Starting Hedge Fund / Investment Company etc.
Hello , I was looking to start something like a hedge fund , but not a hedge fund because the costs to do so are quite high. Initially I am able to raise 300k -1M so hedge fund probably isn't the best way to do it. Is there a way we can go about this through an LLC or something of that nature? We want to do active investing and do a 2% management fee with a 20-25% performance fee over some hurdle rate , also wanted to add in random stuff like if we make over 50% we get 30% over some whatever. But wanted some input.
We won't have over 100 investors obviously , but main problem right now is figuring out legal structure of all this.
Legal is too expensive to justify it along with one time compliance/accounting etc...
Why not leverage yourself and trade?
I already do trade myself have been doing well over many years and now people want to give me plenty of money . I can raise a lot (for my age) , but starting off we have range of 500k-1M commitments early on. People want to give me money so hard to just turn it down you know what I mean especially since I believe in my ability and can help them and not to mention everyone around me is telling me to do something like this rather than a regular portfolio management job haha.
Any idea on costs and how I could go about this?
I can help. I already have a HF setup.
How may I contact you?
depends on what products are you are trading, and what the strategy is like. Equity long/short has different needs from options, futures, swaps, bonds, FX, etc...as well as holding time and execution costs. Are you actively day-trading...or are you holding positions for longer periods of time?
For example, you could run separately managed accounts at interactive brokers (need to research the legalities, but should be very cheap). This is not ideal, but might be a good place to start.
just start a subscription service and teach others to be millionaires based on your expert trades!
Lol hell no I hate those type of people , those folks aren't millionares themselves but try to give out signals lol.
That was a joke
Ask a fund administrator what the costs will be, but not the time to be coming up with a custom fee structure until you're doing your own compliance.
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