How to raise capital to start a hedge fund?

Quant93's picture
Rank: Senior Chimp | banana points 18

Hi everyone!
I am interested in starting an offshore hedge fund. The problem for me is that I, except from my education (still attending a university where I am studying business and economics), have no real experience. However, I have invested and traded on my own and I have recently developed a really interesting investment strategy.

It is a quantitative investment strategy which I figure might help a bit due to my complete lack of experience. The backtests that I have done on the strategy shows that it would have significantly outperformed the S&P 500. And the goal for the fund would be to have a good relative return compared to the major US indices, not to aim for just a good absolute return.

But, my question is, how can I raise capital to this fund? How can I assure potential investors that I can manage to run a fund successfully? And where do I find these investors?

The only thing that I can say would contribute to my credibility is that I have taken and passed Swedsec licensing tests. I live in Sweden, and Swedsec licenses are usually required for financial analysts, fund managers, investment advisors and so on. Although I am not really familiar with the regulations in the US, but from what I have read I think our Swedsec license is equivalent of your Series 65 license.

But anyway, how do you propose that I handle my situation? Is it still possible/realistic to find investors?

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Comments (75)

Oct 13, 2015

Publish your investment thesis here and we'll help you decide from there.

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Oct 13, 2015

good luck...

go prove me wrong.

Oct 13, 2015

Don't want to shatter your hopes and dreams... but no that's not possible. It's hard enough to attract investors to a fund with a proven positive track record. General rule of thumb is that institutional investors do not invest unless the PM or the fund itself has a proven track record in the HF industry. In fact, industry experience (and a proven track record) is probably the most highly valued characteristic of a successful PM.

And three things to note:

1) Track record for fundraising purposes does not include your personal account no matter the size.
2) If your only investors are family then you most likely are not qualified to run your own fund especially if you were unable to attract outside investors IMO.
3) Unfortunately, a series exam / license is a minimum qualification to operate in the securities industry and is not highly regarded. If anything it reduces your barrier to entry to work at a firm because they dont have to wait for you to get licensed to start working with clients but it certainly will not help you to raise capital. With that being said, your best option is probably to work somewhere in-house, gain experience and then in-time you can test your theories in practice when you have worked your way up the ladder.

There are no short cuts. Best of luck.

    • 2
Oct 14, 2015

I agree with what you said about institutional investors. I am completely aware of that getting institutional money is close to impossible for new funds. However, I have no intention of trying to get any money from institutional investors during the first years. Instead I was thinking about approaching high net worth individuals. Those that have a net worth of at least a couple of 100M $ and a big portion of wealth in liquid assets.

I do have a relative that has been working for an Italian billionaire, and she might be able to introduce me. But other than that, I don't really know any super-rich people. Is it possible to arrange short presentation meetings with rich people, or do they generally decline all that kind of stuff?

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Oct 23, 2015

What would be the story you would pitch to the high net worth investors? "Hi, I'm a student can u give me $100M to invest pls?"

Jan 9, 2016

Well, yeah, sort of. I know that doesn't sound that good but.. Anyway. Since this strategy worked very well for me before the plan is right now to use the strategy with my own money (about 500k) for some years, get the track record audited, and then try to pitch to some high net worth investors. The goal is to be able to start doing that in just 3-5 years. Then I will aim at getting somewhere between 2 and 5M USD to start up a real fund. In that phase I don't need any profit. Just enough AUM to cover the costs of running the fund. Then I will run the fund for some years until I have built up a solid track record. So hopefully, in about ten years or so, I can start going after institutional money, or just more money from HNWs.

But don't get me wrong. I know that this is difficult and that my odds of succeeding is somewhere around one in a billion. But I can't see any reasons to not try. I mean, I am still studying and doing "normal" work, so I am not sacrificing anything by doing an attempt on my plan.

Since I have gotten very good risk-adjusted returns before, I figure it might at least be a good idea to try getting investors in case my good performance continues. Even though the chances are small I will get any money.

Oct 13, 2015

How did you perform your backtesting?

Oct 14, 2015

It's not going to happen.

Oct 14, 2015

Why not? I mean, a lot of people seems to complicate things more than they have to. Thinking that something is impossible and that you need 10 years of experience to do this, or 15 years of experience to do that, and so on is the best way to actually make the possible impossible. How many people have actually tried to start up a hedge fund when they have not so much experience? My guess is that most haven't even given it a serious try, or they have given up after just a few months of failure to raise capital.

I mean, most investors focus (at least primarily) on the previous performance of the funds they are investing in. So, even if I will not be able to raise capital right now, I can still start an incubator hedge fund, run it a few years and have the track record audited. Because as long as the fund performs better than the overall market without taking higher risk I can't see why at least some investors wouldn't be interested.

    • 1
Oct 14, 2015

No, most investors focus on keeping their day jobs and not getting fired/sued by their constituents because they idiotically invested in a 22 year old with no formal training.

If you truly believe what you're saying then you would start talking to hundreds of LPs instead of arguing with us. Ask if they would invest in your fund if you showed x% alpha over y years and see what they say. You might be right, maybe a few non-institutionals would be interested.

All i know is that I have talked to dozens of LPs (out of which 5+ have invested with us) and they would all laugh you out of the room.

Oct 14, 2015

Okay. Anyway, I guess I want to thank you for being honest. I just think that if I prove that I can perform a good return I will eventually get some investors. But as someone mentioned earlier, it would of course be more realistic to try to get a lot of relevant job experience for some years before I can realistically get the initial capital needed. But I will start talking to lots of investors and, even if they might not be interested in investing right now, try to get some understing of what it would take to get their attention.

Thanks all!
Hope I will prove you wrong! ;)

    • 1
Oct 23, 2015

There will always be some kid out there who thinks he's the next Buffet/Soros/Icahn...

Oct 14, 2015

Okay. Anyway, I guess I want to thank you for being honest. I just think that if I prove that I can perform a good return I will eventually get some investors. But as someone mentioned earlier, it would of course be more realistic to try to get a lot of relevant job experience for some years before I can realistically get the initial capital needed. But I will start talking to lots of investors and, even if they might not be interested in investing right now, try to get some understing of what it would take to get their attention.

Thanks all!
Hope I will prove you wrong! ;)

Oct 14, 2015

Interesting, and rather telling, that you ignored my question.

Oct 14, 2015

Any quant worth their salt knows the pitfalls associated with backtesting. It seems you are putting far too much faith in something that is most likely completely and utterly inaccurate.

In addition, you're a business major - not a quant. I'm not sure you understand what 'quant' strategies entail, let alone possess the ability to comprehend them.

Oct 14, 2015

Yes, I do no that backtesting is never completely accurate. So I have to admit that I can't be sure if it really will work in the long run since I have only used this strategy "for real" for about a year. But the strategy isn't really the usual quant. It is not any complicated trading strategy. It is more automated value investing. A bit of Joel Greenblatts "magic formula" but with some big alterations.

The backtesting is done only with historical financial data and excel. When backtesting I changed the portfolio three times a year. But as you mentioned backtesting can sometimes be far from the reality.

Oct 14, 2015
Quant93:

Yes, I do no that backtesting is never completely accurate. So I have to admit that I can't be sure if it really will work in the long run since I have only used this strategy "for real" for about a year. But the strategy isn't really the usual quant. It is not any complicated trading strategy. It is more automated value investing. A bit of Joel Greenblatts "magic formula" but with some big alterations.

The backtesting is done only with historical financial data and excel. When backtesting I changed the portfolio three times a year. But as you mentioned backtesting can sometimes be far from the reality.

I think my post came out confrontational, which was not my intention.

You're obviously smart and motivated. That is a very powerful combo and when combined with hard work, will take you as far as you want it to.

Forget this rubbish about raising funds because it is not realistic. Keep doing what you're doing and network/apply into investment management firms. Your personal investing activities will help you leverage yourself when the time comes.

Oct 16, 2015

Okay, thanks for the support. I will follow your advice and focus on networking and getting a good job.

Oct 14, 2015

LP here. I can confirm a lot of what has been said. We probably wouldn't even meet with you unless there was some special circumstance. Additionally, you're probably even less likely to get money from HNWs unless you personally know them. At this point your best bet is to keep trading on your own and try to get some experience in the industry.

Another idea is to use a site like FundSeeder to track your performance. Not sure how good it is, but it is run by Jack Schwager so it can't be too bad.

Oct 16, 2015

Okay, I see. Thanks for the response. Do you think FundSeeder, or other similar services, are a good option for performance tracking? Or is it better to pay for having the track record audited by a firm?

Oct 16, 2015

Use what you have learned to get a job, where other people pay you, and you gain experience, you know, a job. See what you learn. Investing, trading, arbing, and quant strats; its all an apprentice game. So time to get some apprenticing done.

Oct 16, 2015

Yes, I will focus on doing that. I know that trying to start a fund, especially for someone in my age is really a shoot in the dark. But I just wanted to hear with you guys if there was any possibility to succeed. Even though I must admit that I was sort of disappointed that the answers was that is is sort of impossible, I am now more motivated to really take time and get the experience I need. So, thanks :)

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Oct 16, 2015

Im not sure why you are asking the question tbh, I think you know the answer. It comes down to convincing people with money to trust you with their money. In your situation, the only way to do this would be to have friends and family that know you that are willing to take the plunge. Lets be honest, if i had a couple mill and a 22 yo with no experience and no quant background came with some automated strategy backtested in excel id tell him to fk off. Thats not to say you couldnt have discovered some great strategy.

Why dont you just start running it and put any money you save into it? If its so great then you should make a decent return.

Oct 16, 2015

That sounded a little cruel, but then again it is the reality I suppose. I am running the strategy already. I have done that for about a year, and it has been generating a good return. But as others here have recommended I will focus on getting job experience and continue to invest my own money. The only concern I have is that I would like to have my track record validated in some form, so that I will be able to use the track record that I am creating later on. Do you have any suggestions on the best way to do that?

Oct 16, 2015

On a fairly regular basis, some dude with a high school education, no actual investing experience, and a fancy suit is accused and convicted of bilking tens of millions of dollars out of unsuspecting investors.

OP -- All you have to do is promise the moon and use some fancy jargon and get retirees in Tennessee (or wherever) to give you all of their life savings. It's been done. However, your sales skills and ethics will need to be stretched to the limit.

You should start by telling them you earned your degree in theoretical physics from MIT at the age of twelve, earned your MBA from Princeton at 16, and some PhD of your choice a couple of years ago. Then you can talk about your highly secretive strategy. Make sure to use lots of big words, as that will impress these unsophisticated investors.

Good luck!

    • 2
Oct 16, 2015

Haha, almost surprised that it took so long for someone to suggest fraud. However, I don't have any intention of using misleading information to attract investors.
But what you mentioned about sales skills will probably be true even after years of experience and a proven track record. They will need to be stretched to the limit.

    • 2
Oct 17, 2015
DickFuld:

On a fairly regular basis, some dude with a high school education, no actual investing experience, and a fancy suit is accused and convicted of bilking tens of millions of dollars out of unsuspecting investors.

OP -- All you have to do is promise the moon and use some fancy jargon and get retirees in Tennessee (or wherever) to give you all of their life savings. It's been done. However, your sales skills and ethics will need to be stretched to the limit.

You should start by telling them you earned your degree in theoretical physics from MIT at the age of twelve, earned your MBA from Princeton at 16, and some PhD of your choice a couple of years ago. Then you can talk about your highly secretive strategy. Make sure to use lots of big words, as that will impress these unsophisticated investors.

Good luck!

Honest advice here to get to an end. Probably not the best way going about it, but hey - you got your question answered.

Oct 16, 2015

The fact that this thread was even created in emblematic of the environment this 6 year bull market + Business Insider stories of 17 and 18 year olds supposedly starting hedge funds. Look, you do have a shot at starting a hedge fund; it's just not going to happen now. I can't think of a single example of someone starting a hedge fund at your age and experience and going on to be successful. Put the time in to learn the industry, work your ass off, and in 10 years, with a good amount of experience and connections, you have a shot.

    • 1
Oct 23, 2015

David Einhorn got his start in a similar fashion to OP, believe he invested relatively small amounts of his parents money at first.

Oct 23, 2015

Einhorn was already working at an IB and was lucky to come from a well off background that helped him build his AUM (it was still pathetically small in the beginning.) Furthermore, he didn't achieve much success with his hedge fund until he was later in his 20s.

Oct 16, 2015

Don't let anybody tell you it won't happen. There are plenty of people out there with money who you could find if you pitch it correctly. Anything is possible, although obviously the probabilities are against you, if you set your mind to it it's possible.

You may not get a huge seed at first, maybe a couple mil, but if you build a track record with that you can grow. BOL.

    • 1
Oct 16, 2015

Second.

schmooze or lose

Oct 16, 2015

I'll start by saying nothing is impossible... If you catch a few lucky breaks, it might work out. But to reiterate what many have said here, it's going to be very challenging to raise capital without a proven track record.

While it is helpful to show a backtest, I have never seen a strategy with a "bad" backtest... Realistically, you need a stellar live track record to show investors if you want to gather meaningful capital (other than from FFF round), especially since you don't have much credibility otherwise (not trying to be confrontational, put yourself in a HNW individual's shoes).

If I were trying to do this from your position, I think best bet is to create an "incubator fund" with a few thousand dollars (~$10,000 min probably, but $100k is threshold that typically gives add'l credibility... but really depends on # of positions you're taking). Sign up for a low-cost trading account (Interactive Brokers, Ameritrade, etc.) and chat with the platform about what you're trying to do, make sure that if you so decide in ~1-2 yrs that you could have performance audited. Then, in two years or so, if you really do have stellar performance and have individuals that are interested, you can spend the money to get your performance audited/verified, pay the legal fees to set up the necessary corporations / partnership agreements, etc. This stuff is not cheap (you're probably talking about ~$20k absolute minimum... got quotes myself within the last 12mo), so you can keep your downside capped until you're at the point where you want to launch the vehicle and open it to others.

Oct 16, 2015

This is on the same level as the OCR kids who "like to build models in their free time"

Don't be a doofus. Ambition is good, but dude, you're trying way too hard.

If one of your peers had a thesis and a spotless backtest to prove it, would you invest? No. No one would.

Put in your time and read up - that's just the cost of admission.

Oct 16, 2015
mrrichman:

This is on the same level as the OCR kids who "like to build models in their free time"

Don't be a doofus. Ambition is good, but dude, you're trying way too hard.

If one of your peers had a thesis and a spotless backtest to prove it, would you invest? No. No one would.

Put in your time and read up - that's just the cost of admission.

I agree that he needs to adjust his perspective and be more realistic with his present goals. However, I think your post goes too far and is not only counter productive, but also wrong.

Oct 16, 2015

Check your private inbox.

Oct 18, 2015

I highly recommend you learn wtf you are trying to do before proceeding to try and raise funding. No one serious about back-testing does back-testing in Excel. That's like using a Camry in an F1 race. Also, phrasing this as a "hedge fund" isn't really the best structuring option, IMO.

Don't burn some good connections before you are ready... trust me.

Oct 18, 2015

Okay, yes, I will learn more before I try to raise funding. But about the backtesting; do I really need anything else than excel? The strategy is not complicated so I don't see the point of using any other program than excel. However, if I'm going to present a backtesting to a potential investor I will of course do a more sophisticated backtesting.

Oct 19, 2015

It's not excel that's the problem. Its the assumption that if you're using excel your data that you're testing on is probably useless, and your testing probably isn't rigorous. Is your data free from survivorship bias? Is it tick level data from the individual exchanges, or is it end-of-day aggregate? Free data from Yahoo! Finance isn't gonna cut it. If you're going to convince anyone that an automated, even slightly quantitative strategy is worth risking their money you're going to need high quality data and statistically rigorous backtests, forward tests, and live trading.

Oct 18, 2015

It isn't about how complicated your model is, it's about how complicated proper back-testing is. While it could be done in Excel, it would be quite laborious compared to the modern tools of the day.

You say that if you are going to present your model to a potential investor, you will then do a more sophisticated back-test. Like, wtf? I mean, why would you not do this before? Like how are you validating your model when you haven't even rigorously tested it. Just seems odd. Put in the work if you want to do this.

Making a model that seems amazing without proper testing is pretty fucking easy.

Jan 9, 2016

Thanks for the feedback. I have decided to wait at least a few years before even trying to raise any capital. I have used this strategy for the last 3 years, and it has worked very well. And the back-testing also showed that it would have worked very well the years before that too. But, I can agree that I will need to do a better back-testing before I can draw any good conclusions about how the strategy have worked. I am continuing to use the strategy with my own money. The plan is to do that for about 3-5 years more. Then I will have used the strategy for 6-8 years so I can be more sure if it really has potential to outperform the markets consistently or not.

Oct 27, 2015

I thought about writing some serious thing about how to approach people and sell yourself because I raise money for a living (albeit not for a HF or PE fund, but the idea is the same), but it's really just not worth it, because you don't get it.

someone (I think it's already happened) will tell you anything is possible, but look at it like this: you have a binary outcome situation if you get this off the ground, one with an extraordinarily high probability and one with a small probability. high probability: you fail and become the next lumina investments and get laughed at for the rest of your career. low probability, you hit it big and become a gazillionaire.

I find it extremely hard to believe that a quant based strategy that's based on something intuitive and not luck hasn't been discovered yet. I think with all the algos and HFT the only way to outperform is something that's contrarian and value oriented, but that's neither here nor there.

here's what I'd do if I were you. apply your tenacity and passion to investing in your own account (real money, not a hypothetical strategy). see if your strategy works. when you graduate, get a job in finance, either at a bank doing trading, ER, or at an Asset Management firm as an analyst. a few years have gone by, you'll know if this was a fluke or if you actually have some skill. if you prove to be a good investor, you will never have a problem getting a job, and you'll likely have honed your skills while you were working.

if you do that and your strategy doesn't work out, you'll still have learned about the markets with real money, and you can sleep at night knowing you didn't wreck anyone's retirement.

    • 1
Oct 27, 2015

Why should I give you $1mm+ if you won't even spend at least $20k to properly backtest your strategy to account for various biases and omissions?

Oct 27, 2015

I must say I don't really agree with your comment.

First of all, you are proposing a potential catch-22. Second of all, where are you getting $20k? Not every strategy requires tick-data backtesting. Depending on certain variables, it may not be practical or worthwhile.

But in a broader sense I agree with (what I think is) your overall sentiment: if one is seeking funding then they should be putting in work.

Jan 10, 2016

1) post your trades on twitter in realtime (entries and exits...winners and losers), along with your thesis for each trade.
2) recap your trades/positions at the end of each day (with annotated charts)
3) talk/tweet at other traders on twitter to discuss the markets /trades.

after about a year of this, you will build up a reputation on finance twitter. i have seen people do this on twitter, and get hedge fund jobs from it. This is an emotinal / reputational track record that a spreadhseet showing your returns can not duplicate

Jan 10, 2016

Any help on this :)

Jan 10, 2016

.

Jan 10, 2016

.

Jan 10, 2016

Getting seeded as a research analyst is pretty tough unless you were in a risk taking role... so i would assume you would need a track record, but if your track record is off of your personal account and is valued at less than $5mm, i dont think you are going to garner a whole lot attention from just about anybody except your family and friends.

Unless you are a high profile start and a former rockstar trader bringing $100mm for your BB (prior to volcker/doddfrank) or on the buyside with the absolute perfect pedigree... chances are that your fund will never gain traction even if you raise $10mm.

I think the hurdle that now determines whether a fund still exists after two years of operation is now close to $100mm because the cost of keeping up with regulation and greater scrutiny from institution has pushed the cost up so high that the days of you and a junior analyst with a bloomberg terminal in a small office is no longer acceptable.

It's kind of funny how you said that you chose sell side research role on purpose when the writing was obviously on the wall when you joined that the sun was setting on the sell-side - perhaps the industry as a whole.

But if you have the decent lump of money to start developing a track record and prove that your strategy is scalable, perhaps you might get some institution or FoF, or family office to take a bite 2-3yrs down the road. However, that's the easy part. The hard part is gaining momentum/traction and surviving with such small AUM - even if you were able to get a rather generous allocation (I would say for a start up with your background, if FO or FoF gave you $5mm, that would be on the generous side). And at $5mm-$10mm, let alone $50mm, you won't be able to develop the infrastructure you need to start attracting and meeting the reqs of institutional money because that would require you sinking every bit of your fees back into the fund (and that's assuming if you even charge 2/20 and have the original backers not demand % of your fees).

Starting a HF is super tough now. Everything related to starting a HF is a long shot now. If I were in your shoes, I would approach many of the large multi-manager HFs (multi strategy) and get an internal allocation instead. There's nothing wrong with being a PM at a multi-strat HF when it takes all the business risk out of the equation for you. Now if you spent 4-5yrs as a PM at a muli-strat and killed it for all those years, then perhaps getting the type of seeding with scale becomes a possibility for you. But for now, you might as well play the lottery for the amount you seek.

Jan 10, 2016
easternaffairs:

If I invest my own money over the next 3-4 years and have a good track record (15-20% returns in US$ terms)

Are 15-20% returns different in other currencies?

Jan 10, 2016

If you have a dollar-denominated fund investing in multiple asian currencies than yes, you are managing fx risk and your returns in other currencies will differ from your returns in USD.

Regarding OP's post, I can't really be of help, though would not that Lexington's comment above is dead on for the US market, but may be different in Asia where the hedge fund industry is still developing.

Jan 10, 2016
RLC1:

If you have a dollar-denominated fund investing in multiple asian currencies than yes, you are managing fx risk and your returns in other currencies will differ from your returns in USD.

Regarding OP's post, I can't really be of help, though would not that Lexington's comment above is dead on for the US market, but may be different in Asia where the hedge fund industry is still developing.

I was being facetious but you're right. (Although that fx risk should be hedged.)

Jan 10, 2016

I only know of one sellside analyst able to start his/her fund and it comes with a lot of experience, fame, a recession, and probably a dozen other factors going her way.

This ended up in disaster and I doubt LPs are going to be seeding sell-side in the future, they pretty much learned their lesson with Meredith Whitney:

http://www.bloomberg.com/news/articles/2014-12-24/...

There are a thousand things that come with being a PM which include portfolio management and constant daily re-sizing to name a few, that you have absolutely no experience with when you're on the sellside. It's not as easy as simply long/short a name and holding onto it.

Also, in recent years I've only seen hedge funds start by being seeded from their original investors, which means you need to spend a few years doing very well as a HF analyst or principal on your own and have a great relationship with your PM.

MBA doesn't help for fundraising, a few funds around my area had PMs who didn't even go to bschool and were usually just rock star 2 years IBD to 5-7 year HF rock stars (founding analysts at Tiger cubs, etc.)

Your focus should be on getting into a hedge fund as a buyside analyst and then progressing from there.

Jan 10, 2016

Have to be honest with you, I would suggest that you go to the buy-side (it sounds like you are more-than qualified) before you attempt to raise capital. I have been on both sell-side and buy-side and I can tell you that managing a personal account with decent returns is far different than managing a full-scale hedge fund with investors.

There are many nuances of buy-side that you just cannot and will not learn on the sell-side. For that reason, if I were an investor, I would not feel comfortable seeding a sell-side analyst with no buy-side track record.

Best Response
Jan 10, 2016

The thing about starting your own fund is its very high risk and you could spend a whole lot of time trying to raise a fund and end up not scraping enough together to get off the ground. Luckily there's a widely known and fairly basic litmus test to determine whether you're wasting your time or not. Ask yourself: "am I asking people on WSO how to start a hedge fund?"

    • 4
Jan 10, 2016

Thanks a lot everyone for your replies - these were very helpful.

Jan 10, 2016

I'm at one of the larger HFs in Asia on the equities side, feel free to reach out on PM if you'd like to have a conversation offline.

Jan 10, 2016

What makes it even harder to succeed in raising a fund or expanding an existing one is that investor capital is not a commodity. On one hand, you can have X dollars from someone who believes strongly in you, is sophisticated and understands that even good funds will have ups and downs, and who understands and believes in whatever strategy you are utilizing. On the other hand, you can have X dollars from someone with little patience, who demands short-term results, and who is always occupying your time with calls/etc. The first X dollars is much, much more valuable to you than the second X dollars.

While I'm sure it is extremely hard to be selective about taking someone's capital when you are just trying to get off the ground, the success of a fund depends on having the right clients. With the wrong clients, even a great manager could end up belly-up in months if he doesn't show results right away.

Jan 10, 2016

Thanks everyone. @Reality - seems like I do not have the privileges to send PM yet but thanks a lot for your offer to help.

Jan 10, 2016

If you can put up those kind of numbers consistently in your PA, you should try to get a buy-side job at a respected fund in Asia.

Jan 10, 2016
bmcrhino:

respected fund in Asia.

Paradox?

Jan 10, 2016

Unfortunately I think Marcus hit the nail on the head. Fortunately, however, I just payed off the last of my Capital One Student Card, so, if you put in the time for a little wining & dining, you might just have a potential 2 large coming your way.

Jan 10, 2016

Plenty of investor conferences you could attend.

Jan 10, 2016

I'm going to be brutally honest here, you probably want to stop while you're ahead.

1. How much money do you expect to start with? Frankly, $10k is a PA...I hope you plan to fund-raise a lot because you need significantly more capital. You'll burn through $10k in about 5 seconds just from trading costs. That plus one random move in the market and your entire fund goes to 0. You need a significant amount of capital to avoid market fluctuation like that.

2. Do you have any experience in fundamental research? What's your CV like?

3. Have you set up the necessarily legal entities? That requires money as well.

4. Wealth management experience will not help you whatsoever with regards to running a fund

5. Have you looked into different fund strategies, and considered the kind of strategy you will run?

I'm not trying to be a douche, but it's really not as simple as you're making it sound. You need some sort of track record to even have a shot of securing funding. I'm not the right guy to tell you the necessary steps, but I know enough to see a few holes in this plan already.

Jan 10, 2016

Don't.

Jan 10, 2016

jesus guys, i figured with me on the site you guys wouldn't fall for such sub-par trolls like OP here.

i am disappoint.

Jan 10, 2016

This is obviously a joke and even if it isnt there is no point helping OP because he is hopeless

Jan 10, 2016

1/10

Would not read again.

Jan 10, 2016
Sonny:

'm 26.5 years old with wealth management internship experience at a BB.

Obviously troll post. 26.5 years old? I can't believe you did not just round up to 27 and get credit for the extra 0.5 year. If you are 26.49 years old though, you cannot round up to 27. Don't ever try it. My buddy who started a hedge fund told his investors that he was 25 when he was actually 24.48 years old. When they found out, his capital went bye-bye.

Jan 10, 2016
Jan 10, 2016
Jan 10, 2016