| Title,Score,URL,Comments | |
| "Tool that tracks flights by executive private jets. Data that hedge funds pay thousands for in order to predict corporate mergers, available to you for free.",94,https://www.quiverquant.com/sources/corporateflights,"Thank you. | |
| I love this guy! | |
| This is top level Intel! | |
| Save | |
| I'm new and beginner to this, idk if anyone will read this comment but why is this important? please explain." | |
| Why the American dream is dead.,44,https://www.reddit.com/r/hedgefund/comments/p0s9mo/why_the_american_dream_is_dead/,"I don’t think you know what a hedge fund is. | |
| Our whole monetary system is F’d too. When you go to the bank and buy a home. They give you a loan to purchase the property. However the banks get the money from the federal government. Banks can lend out to 10 time times of their assets. So let’s say you want to buy a house for 1,000,000.00 the bank only needs to have 100,000.00 in assets to lend you 1 million dollars. They then take your loan and put it in a package and sell that loan with other loans as an investment on the stock exchange which they have insurance on your loan encase you default on the loan. They then hold your property as an asset of the bank. So your million dollar home they can now lend out 10 million dollars. Let’s say you default on your home and they foreclosure on your property they then receive money from the insurance company for the value of what they lent you, and then they take your home and sell it and make even more money. | |
| I’m not sure you understand the financial system. Good luck to you! | |
| And when the housing market collapses, hedge funds will get taxpayer money to bail them out. | |
| Buy bitcoin!!!! | |
| Lol | |
| Inflation is the reason. People keep making more money but everything keeps getting more expensive at a faster rate. | |
| Its funny, when we told you a certain demographic was ruining your financial system and enslaving you it was all conspiracy. | |
| Well, here we are Americans. | |
| Good luck with that class action, it is not going anywhere. | |
| Sue the federal reserve 😂🤣🤣🤣 that’s the funniest shit I’ve heard all year. Not to mention they’re not even a part of the US government they don’t abide by our laws. It’s a group of anonymous foreign bankers | |
| I put in an offer for 6 houses 10k above ask and got outbid every time | |
| Replace “Hedge Fund” with “Private Equity Firm” | |
| https://www.nbcnews.com/business/real-estate/who-s-outbidding-you-tens-thousands-dollars-house-hedge-fund-n1274597 | |
| we need a complete restructure, Investment properties no more. All bank/hedge fund owned properties forced to sell and all other investor properties held until the original person on the loan passes. then all Investor properties gone. Why should one person live off the back of another. | |
| [https://www.nbcnews.com/business/real-estate/who-s-outbidding-you-tens-thousands-dollars-house-hedge-fund-n1274597](https://www.nbcnews.com/business/real-estate/who-s-outbidding-you-tens-thousands-dollars-house-hedge-fund-n1274597) | |
| ​ | |
| I understand. *I also understand banks and wallstreet are greedy.* | |
| Im trying to come up with a way to screw the hedge funds guys like they did with game stop. | |
| fake money. no thanks | |
| https://www.google.com/amp/s/m.investing.com/news/cryptocurrency-news/still-ticking-tether-prints-money-out-of-thin-air-2517171%3fampMode=1 | |
| Bitcoin is an even bigger scam than the dollar. | |
| The housing inflation is caused by banks giving discount money to hedge funds after they buy the house cash. this means the hedge fund can spend 50k more and it doesn't cost them a cent more. Basically the banks are screwing us. | |
| inflation caused by a failed federal reserve. Money shouldn't be basically free to loan. Savers should have good interest rates. | |
| And still, even after 2020 there's people out here unwilling to SEE the truth. | |
| Yes it is you 100% can sue the federal reserve for TORT | |
| Yes it is you 100% can sue the federal reserve for TORT. Its happened many times. | |
| Federal reserve is setup by the US government. if your going to post make it useful not total bull crap. | |
| I am in the same boat. If you look at who outbid you I bet one of them is a hedgefund. | |
| thank you I did. its the same people just changed their name. Must be because they caused the 2008 crash now they are at it again. | |
| The author of that article didn’t cite any actual hedge funds and pretty obviously doesn’t know what a hedge fund is either. | |
| The author of that article didn’t cite any actual hedge funds and pretty obviously doesn’t know what a hedge fund is either. | |
| I mean the government is planning on taking ownership of all properties soon if you haven’t noticed the eviction memorandum is the perfect example. The Supreme Court in the United States ruled that the eviction memorandum in the United States was unconstitutional and then the cdc basically said F you were extended it lol. There won’t even be a United States in a few years | |
| The elite are planning on collapsing the current economy to bring in a one world system of control. You should be more concerned with stock piling food, guns and ammunition and other supplies. There’s not much time left. All you have to do is look what’s going on all over the world in various countries to see the writing on the wall | |
| Lol okay how much research have you done? Fake money is fiat. Cash is trash. When the US government has printed almost 70% of all money in circulation this last year. Where does that come from? Cash is backed by nothing! You’ve been lied too | |
| Lol Omg the tether fud??? Come on now you’ve obviously not done your homework but it’s okay. People will catch on. Just like the internet In the 90’s | |
| They’ve been audited that’s old news being brought up to try and bash the bits!! | |
| Your in over you’re head buddy | |
| Well, they don't call it programming for nothing hah. | |
| What lawyer is taking your case? | |
| You’re not going to win a lawsuit against the federal reserve stop being silly. Only person to ever sue them was in 2009 and he was subsequently suicided | |
| They set themselves up. “The government” is just a third party allowed to commit violence their behalf. State mercenaries | |
| https://www.nbcnews.com/business/real-estate/who-s-outbidding-you-tens-thousands-dollars-house-hedge-fund-n1274597 | |
| https://www.nbcnews.com/business/real-estate/who-s-outbidding-you-tens-thousands-dollars-house-hedge-fund-n1274597 | |
| [deleted] | |
| This might be the dumbest thing I’ve read on Reddit. Take your tinfoil hat over to the conspiracy theory board. | |
| where are you getting 70%. the government can print money unlimited. it looses value but 70% is not right | |
| Lol I own Bitcoin but even I know it’s artificially pumped. Tether is essentially the fed. | |
| no Im not. if you don't have something nice to say screw off. | |
| Ones paid by the hour | |
| that's not true. they get sued all the time and I already have a lawyer willing to take the case. You have a good one as you are on the other side of this trying to stop this. | |
| Let me know when you find these elusive hedge funds buying houses. | |
| Dude “On June 29, 2021, five justices on the U.S. Supreme Court agreed the Centers for Disease Control and Prevention (CDC) lacked the authority to implement a nationwide eviction moratorium.” They said it should continue until 07/31/2021 and then the CDC head extended it. They do not have the authority to do it | |
| https://www.reuters.com/world/us/us-appeals-court-finds-cdc-eviction-moratorium-unlawful-2021-07-23/ | |
| It’s not a conspiracy theory. It’s going to happen. You probably think this Whole economic shut down is really about a deadly virus. This is a planned economic collapse and installing a one world government this was all preplanned. The lockstep documents are from 2010 | |
| https://thuletide.wordpress.com/2021/08/06/operation-lockstep/ | |
| Look at the documents https://issuu.com/dueprocesstv/docs/scenario-for_the-future | |
| Was a typo sorry!! They printed 40% of all money in circulation in 2020 | |
| Anyone holding cash is losing they’re purchasing power. Inflation is on the rise. It’s going to get bad | |
| Cash use to be backed by gold. Now it backed by nothing. Fiat is the biggest scam in the history of scams | |
| It’s lost 99% of its value in something like 40-50years | |
| We can agree to disagree. People are aware of tether and a lot are merging to USDC | |
| Stablecoins are a joke regardless. And all the shitcoins as well. | |
| [deleted] | |
| The economy is booming right now. Maybe you didn’t notice? | |
| These are just “theoretical scenarios” in order to get people to think about solutions to all sorts of possibilities. This is almost as bad as the fear mongering “the government is going to take our guns” argument. | |
| Justice Brett Kavanaugh, who cast the fifth and deciding vote, wrote in a concurring opinion that he voted not to end the eviction program only because it is set to expire on July 31, ""and because those few weeks will allow for additional and more orderly distribution"" of the funds that Congress appropriated to provide rental assistance to those in need due to the pandemic. He added, however, that in his view Congress would have to pass new and clearer legislation to extend the moratorium past July 31. | |
| And congress didn’t do anything and the CDC extended it are you just dumb? | |
| The Centers for Disease Control and Prevention (CDC) announced Tuesday it will extend the federal eviction moratorium through October 3, 2021 after the ban lapsed over the weekend. | |
| What do you not get about them not having the authority to do it?! What happened to private property? | |
| https://www.cnbc.com/2021/08/03/cdc-will-extend-the-federal-eviction-moratorium-through-oct-3.html | |
| Economy is booming? Are you F-ing retarded? Have you not noticed the constant printing of money? They literally printed 35% of the US currency in the last year?! Now they want to print another couple trillion for an infrastructure bill that has absolutely nothing to do with infrastructure. If you look at the bill there are provisions in there to install devices in their to monitor how many miles we drive so they can tax us for how many miles we drive and they want to put other monitoring devices in vehicles so they can decide whether we drive our cars or not. You people will not see what’s going on until you literally starving to death and you’ll be wondering how this all happened. | |
| Enjoy starving to death. When they collapse the economy. Just remember our conversation no way you can say no one warned you about what was going to happen | |
| FYI Biden’s planning to announce another lockdown august 11th but that might change to the 14th since people like me are telling people about it. | |
| [deleted] | |
| Please, seek medical help and do not have children. | |
| Did the lockdown get pushed to the 14th? | |
| You’re fucking stupid this conversation is over can’t argue with dumb people. The Supreme Court said they don’t not have the authority plain and simple but decline to overturn it because it was ending at the end of the month. The CDC who again doesn’t have the authority assumed the authority and extended it. There is legit unconstitutional tyranny a gut shot to private property owners. If they can do this to renters they can do it to anyone. | |
| The Supreme Court failed to do its job the first time that’s the real problem and we have communist in control of the government end of story | |
| Those were the two dates I heard. I hope it doesn’t happen at all. The city of Philadelphia where I live around just announced new mask mandates. If you read the CDC documents they’re talking about opening up concentration camps in neighborhoods and locking people up and separating people from their families. | |
| https://www.cdc.gov/coronavirus/2019-ncov/global-covid-19/shielding-approach-humanitarian.html | |
| It is often so hard to believe you people are actually real. Then I visit my stupid relatives and I’m like “ah, yep, they do exist”. | |
| Thanks for reminding me of them." | |
| Hedgehog fund manager,44,https://i.redd.it/rk5s2zwkyae61.jpg,GET FUCKED | |
| Hedge fund legend Ray 'cash is trash' Dalio ditches bonds for Bitcoin as losses hit $12bn,44,https://www.cityam.com/hedge-fund-legend-ray-cash-is-trash-dalio-ditches-bonds-for-bitcoin-as-losses-hit-12bn/,"Let's goooooo!!! | |
| Title is misleading. He didn’t “ditch bonds for bitcoin”. He hates bonds. He wouldn’t have bonds in the first place (maybe w/ exception of a tiny bit in Renminbi). He only said he’d rather own bitcoin than bonds, which he thinks are trash. Not that bullish for him to say bitcoin is better than trash. He also said he owns some bitcoin. That could be as little as any amount. | |
| Bridgewater is also taking losses bc they’re betting on an upwards crash and heavy into things such as gold, which haven’t gone up a lot yet. | |
| His problem its his not a silverback | |
| its pretty bullish. it means he expects it to outperform them at the very least and im sure he isnt expecting a 2% return." | |
| Is it possible to create a hedge fund yourself?,36,https://www.reddit.com/r/hedgefund/comments/pewqva/is_it_possible_to_create_a_hedge_fund_yourself/,"Yes, you can. You need the ability to get capital from affluent and wealthy people, and banks. For that, you need knowledge, connections and a reputation of a strong personal brand. What are you selling? Your credibility and skills to grow wealth. Preferably more than just the derivatives market. | |
| No skills but a vision? Then a DeFi unit, or a Quant Fund, Robo even. | |
| Don’t want to sell and get outside capital? You have capital? Then start a family office. | |
| You can start as low at US$10m, but you won’t get economies of scale until around US$50-100m depending on circumstance. | |
| This is the most succinct and broad answer I can give you. There are alot that goes into this legal and finance side. Laws depend on your location. | |
| Well, it depends. | |
| If you want to start a hedge fund you'd need minimum AUM of around 100 million. You would need to have years of track record for banks to allow you to start trading with their riskier options and allowing you to use advanced instruments to profit from your research. | |
| Legal work will be very expensive since hedge funds need to have teams of risk management, accountants, etc who monitor your trades and make sure everything is legit and that you are staying tru to the risk management obligations. You'll need to be audited annually to prove that your returns are legit, external audits are obviously better and more legit. | |
| You'll need to establish relationships with Prime Brokers which will be expensive. There are a lot of sunk costs associated with starting a hedge fund. | |
| But there is good news. If you want to start a hedge fund you don't have to start a ""hedge fund"". You can start off by building an investments partnership which specializes in public or private markets, equities or commodities . There are no capital requirements for them capital can be as low as you'd like it to be and as high as tens of millions. But if your investment partnership is successful and reaches tens of millions then you can transfer it into a hedge fund. | |
| This is one of the best questions I’ve come across in a while. Too bad, no one seems to know what the answer is lol | |
| do you have 100mil to get started? | |
| Yes. | |
| Laws around set-up are dependent on where you live, and where you plan to market. Eg there are structures that are more friendly for us based investors, vs Europe-based investors. There’s always tax as well. | |
| Amount varies on the strategy as well, scalability, liquidity etc. | |
| There are hedge fund platforms/incubators that help fledgling funds share fixed costs across several funds. | |
| I am creating something similar to a hedge fund. Similar in the sense that I am trading different assets across different markets algorithmically using ai. I am managing my personal wealth and don't need to manage others money for mere 2-3% fees. I am able to generate 5-10% return per month as of now and the more advanced models I use the higher will be the return.i suggest you try something like this | |
| You can create a fund and a track record relatively quickly when you understand the licensing and laws. I would talk to securities lawyer but remember there’s different licenses that allow you to do different things, this is key! Pm me if you want some more info… | |
| Why does a family office require 50 to 100 million since he will be managing his own funds? Not trying to be coy. | |
| Quick question: | |
| Presently, I made some break through in quant work, using it last 5 years successfully to gain money, having few six digit personal account, mainly Roth & IRA. For example, last 90 days my growth is 20%. | |
| I have close friend, overseas, who gave me $50k to invest for him and he has accepted 33% commission for me from the gain after tax is deducted. We both have corp formed (California) five years before for consulting (earning every year $20k tax filed last 5 years) and I created a trading account for the corp and invested the money, that also posted so far 20% last 90 days. I use my quant knowledge to grow this funds. This is mainly using statistical arb methods. Running two dedicated server for my quants and they are really good. | |
| This guy is very close, we do overseas business last 5 years and successful, it is 40 years of relationship since we both were college mates, we trust each other well. | |
| However, few others are really contacting me to manage their cash, appx $100k each, but I am completely avoiding them as I do not have proper structure. | |
| Question: | |
| Is it correct or okay to continue investing as corp and share the profits or do I need to have private equity firm? The reason for my ask is that I am certain, based on my success rate, the 50k will become 100k by one year. My friend won't even touch the money and asked me to keep investing further and further. | |
| If private equity firm, is it allowed to include others? | |
| I want to start with a proper structure with legal compliance (will consult soon lawyer for it) before getting into any issue. | |
| I have a background in Data Science and Software Engineering, i am looking to break into industry. Do you have any suggestions how do I move ahead? Thanks! | |
| I disagree with your assessment. I know plenty of Funds running 5 mil and around. You can keep the hedge cost fairly low. 100 mil. is dream come true... | |
| Come join the 2-3% per day gang | |
| No worries! When I mentioned those amounts, it’s just to achieve economies of scale. Simple way to explain is like for wholesale - the more you buy, the better the price. Course there are other benefits. | |
| Family offices comes in different sizes too. You may have staff, you may be a multi family office, or you could be 1 person. Staff like estate management, legal, traders, etc. | |
| But if you’re 1 person, don’t think you’d need a family office. Can just continue being a retail investor. Depends on locale laws and taxes. | |
| Depends on your location. Have a look at hedge funds, payment services, crypto exchanges, blockchain, family offices, and any other fintech | |
| How do those economics work with a 5M fund? No broker will take you seriously. | |
| Lets say say you charge 2/20 ideally, and can put up 20% net returns *(consistently)* | |
| That's 100K in operating overhead plus 200K in profit. Assuming a cheap fixed office cost you 5K/month, personal 5K/month (if you know how to get an analyst that cheap lmk), research costs (10K/month) , misc such as fringe items (insurance etc) 3K/month, that's net profit of 24K/yr not including your salary.... | |
| I say 30-50m is your sweet spot to launch if you manage your overhead expenses and also have a broker take you seriously. Also at that size you can scale more easily b/c you are more likely to scale. | |
| You know people give you money and withdraw funds at the wrong time right? | |
| [deleted] | |
| I am based in San Francisco Bay area, do I need to have a degree in finance/financial engineering? | |
| Of course you are not rich. What I say is that you can run the business not that you can buy a Bentley. You are basically a startup hoping to get rich later at some point. And plenty of prime brokers and banks will take you seriously with 5 mil (personal experience). Times change. There is a lot of competition for money among primes. | |
| There are a lot of variations of a family office but the purpose is the same. To take care of your family - inheritance, assets, tax, estate, etc. You can have an office with 1 person (yourself) or a team: fund managers, estate managers, lawyers, etc depending on your needs. | |
| Sometimes the family office takes care of one family (yours) or it can be multi-family. | |
| Best you speak to your private banking relationship manager (RM) as a start. They know all the details prevailing to your country. If you need more information, then look for lawyers or corporate registration offices. Your RM should be enough, if not they will point you to the right people. | |
| I can't say I know SF well enough. Yeah for institutional funds you really need a degree, or a proven record, or solid connections. Fintech startups are easier but globally right now, it's harder to get a job especially when startup fundings are being pulled back." | |
| power to the people.,37,https://i.redd.it/uithfa2et7e61.jpg, | |
| Creating a Hedge Fund From Scratch,31,https://www.reddit.com/r/hedgefund/comments/mcoccg/creating_a_hedge_fund_from_scratch/,"Found this article. Sounds like you want to look into exemptions to Regulation D for first round investors. | |
| https://www.smithshapourian.com/blog/friends-family-complying-with-securities-laws | |
| Obviously would be a conversation to have with a qualified attorney. | |
| US? if EU - drop me a DM and I’ll guide you through with incubators for both traditional & crypto funds | |
| You also can start with an investment club (partnership, LLC). because everyone involve the management and investment, no need to register you as an investment advisor. | |
| Pls search Series 65 exam, it is for investment adviser. | |
| I am thinking about to start a **Hedge Fund** too, and spend much time do research. | |
| Securities laws are very very very complicated. Or, you can start investment using your own money, and build a good track, and then friends, colleagues, family, and then manage money for others. | |
| Let them give you money privately and then you can go and trade. Unless your homies aren't giving you millions there is no reason to go and set up a HF infrastructure. | |
| What regulators other than your state or SEC will you be dealing with? Certain bodies like the NFA have much stricter restrictions. | |
| Pretty hard to get around this in general.. | |
| How much are you looking to raise? The issue is paying for a lawyer to form your fund might take a nice chunk out of your aum. Someone suggested an investment club, that’s a low cost structure but you have to consider what fees your charging. There are certain laws regarding performance fees and management fees. Do you have a series 65? | |
| I just talked with a service provider: if you passed series 65 exam, they help you register as investment advisor, 5500$ once time. $5000/month for continue compliance and regulation service. and, you need lawyer to prepare hedge fund document. usually, you have your corporation/LLC as IA, ang form a LP/LLC in delware as the fund. | |
| the first year, a new hedge fund May cost you 100-200k USD. | |
| Another solution is start a incubator hund, less cost. | |
| I am not a fund manager, but interest in it. | |
| Sound like bernie madoff | |
| [removed] | |
| So much bad advice here... Why don't you just Google it and read a law firm site? Listening to momos here you will be fined and banned by SEC when shit goes bad and you find out you were selling securities illegally. You can't say oops my bad unfortunately. There's a reason I charge $15k to set the basics up | |
| Sounds like a bad idea to me. Unless you are already managing your own multi million dollar portfolio you shouldn’t start a hedge fund. I could be wrong and you are already a millionaire... | |
| Do u have trading tools | |
| Do u have real time data | |
| Thanks! Rule 506 seems to be capped by number of persons (35 non-accredited) while rule 504 seems to be capped at a $$ amount (1million). I’d assume 504 would be a better route since I could gather more people to try to reach that million | |
| Thanks! In this case, would that mean I’d have to get approval / disclose everything I invest in? Ideally I would like to not disclose my positions to keep my trading strategies secret; just disclosing the total $ assets for example | |
| I'm also starting a fund and have been talking to providers. I've looked into Assure and [blacklabelfund.com](https://blacklabelfund.com). i also don't want to spend too much on securities law so any site that can offload that for me is helpful. | |
| If they give money privately, how will I explain the thousands of dollars being moved back and forth? Won’t this eventually be an issue at some point? I assume I would need some sort of official business structure | |
| I am not sure what other regulators I have to deal with. I wanted to trade crypto if that helps | |
| The issue is most would be non-accredited investors (not $1M net worth, not making 200K). My goal would be to raise $500K given this fact. I planned to have no management fee, but a higher performance fee (30% or so) with a small deposit fee to cover initial fees. I don’t have a series 65 currently but that shouldn’t be an issue to obtain. Is a series 7 also needed ? | |
| Thanks. $5000/month seems very high especially considering the size of the fund will probably be under 1 million to start. Is there any reason for Delaware? I’m currently in New York and planned to form it there simply because of my location. | |
| with everyone's money. | |
| sorry. that never gets old. | |
| No way!! | |
| How am I assured you won’t run off with my funds?? | |
| If I invest through a broker, those investments are backed by the FDIC. | |
| If their systems get hacked, my investments are likely covered by their insurance. | |
| I wouldn’t trust my money to ANY individual...no matter what the return is. | |
| ROI means nothing if your investment is gone. | |
| Did you ever figure this out? | |
| I think you do not disclose your positions | |
| What prices were you seeing ? | |
| I think you set up a private investment limited partnership which will hold title over the account you open at a brokerage. | |
| Unless you are moving 500k back and forth every 6months no one will ever come to ask you anything | |
| [deleted] | |
| another provider: IA in Box, you google and find their web, less cost. | |
| Delaware is the best state for hedge fund, most fund registered there. if you focus on international investors, think about Bemada and BVI, offshore hedge fund. | |
| For hedge fund, usually need two entities: one is for the investment advisor, another is the fund. the fund is the client of IA. | |
| Do u pass series 65 exam? | |
| I live in Toronto, Canada. But my eyes stare at USA market. | |
| I do lots research, if you need, I can email you my research. | |
| I reached out about forming a crypto fund and they said they’re working on a product that aims to be easy and affordable to set one up, but no finalized price yet. I haven’t asked about other fund types | |
| Let's say for example though I managed to get $100KK from investors. This 100KK would have to be deposited into my account for me to trade. | |
| Assuming no infrastructure is in place, would a limited partnership / LLC be enough justification to not run into legal trouble? Would this be better than making an exemption to regulation D with rule 506(b) / rule 504 ? | |
| I am just a bit concerned because I plan to trade using high risk strategies, so loss of principal is always possible. I also planned to do this on a ""share"" basis (ex: you buy 100 shares for $10 each = $1000 in fund. I trade, it is now worth $1500 - which means your shares are now worth $15 each. Dividend can be paid to distribute some profits, shares sold, etc). | |
| I structured it as an investment club | |
| Would love to! DMed you my email | |
| Let me know about the crypto fund | |
| 100kk is 100mil just so you know.. 100k it's a drop in the ocean. Focus on other stuff first like being profitable before you risk people money | |
| let me know your email | |
| Just got a email from them saying they have a crypto product. Looks like it’s 21k blacklabelfund.com | |
| I appreciate your input, but let’s focus on the question being asked. Obviously if I wasn’t already profitable I wouldn’t take a chance with other people’s money | |
| Check your messages on reddit I sent it to you | |
| Are you going ahead with it? | |
| What exactly do you need from them to start | |
| That's not obvious at all | |
| lol not obviously, in fact, its pretty obvious you arent consistently profitable yet or you would have the money. | |
| How hard is it to borrow every cent you can, mortgage your house, sell your possessions, and come up with $500k? Then if you are actually earning good unlevered returns, margin should let you start doubling that very quickly. Now after a few years, you have millions and can afford all this shit. | |
| AND IF YOU ARE NOT WILLING TO TAKE THAT KIND OF RISK WITH YOUR OWN STRATEGY, then your strategy isnt something you should risk with friends and family money. | |
| Yes i'm doing an incubator fund with them. | |
| Just email them to get started. After i reached out, we set up a call where the co-founders went through the beta program (they're a start-up). | |
| I've talked to many lawyers/service providers and these guys are - by far - the best value i've come across. I also looked into Assure but they don't do hedge funds, just SPVs. | |
| You’re seriously an idiot | |
| [deleted] | |
| My AUM suggests the market thinks otherwise. Feel free to ignore advice from successful people. See how that works out for you. | |
| Good questions unfortunately I’m not sure, i would just ask them. When I first talked to one of the co-founders he said they’re a start up and in beta mode so maybe they’re still working on building out the site? I assume if they’re partnering with law firms they have that covered but it’s a good point it doesn’t hurt to double check | |
| If you must know, I graduated college last year with less than $2K total net worth. I emptied all of my savings in the market to trade and had a 1000% return in less than 3 months. I’m now up to about $50K in total assets. The question was how to start a hedge fund, not how to get myself in debt and sell all my possessions for capital. | |
| Uhh what. Why are you even asking this question then. You can make 10X every 3 months LOL. Stop posting on reddit. Just keeping doing that. In 12 months your 50k will be 500k, then 5M, then $50M. Now you have a fund and instead of a shitty 2 and 20, you have 0 and 100. And in another year you will have quarterly performance of $50M -> $500M --> $5B -> $50B. In less than 24 months with your bulletproof strategy, you will be on of the richest people on earth. Wow! Good for you. Stop posting and just do that. Took me decades to make a brick, but looks like it will take you just 2 years. so why are you posting about raising a fund if you have returns like that? just go make the money | |
| Remember, everyone is a “genius” in a bull market | |
| The question was how to create a fund. Bring your toxicity somewhere else instead of shooting down peoples dreams and ambitions asshole | |
| Not as much of a “genius as ur mother | |
| *** | |
| ^I ^am ^a ^bot. ^Downvote ^to ^remove. ^[PM](https://www.reddit.com/message/compose/?to=YoMommaJokeBot) ^me ^if ^there's ^anything ^for ^me ^to ^know! | |
| The mindset to think that a) the person asking a question asked the right question in the first place, and b) therefore should have a monopoly on the discussion topic... is exactly the type of thinking that creates the opportunities in the market I exploit. That is literally the mindset of ignorance. Whatever. Keep learning nothing and giving me money in the market. Nature rewards the right. | |
| You are probably the dumbest person on the internet. I too started off with 2k and some degenerate YOLOS ended with 100k, does that mean I’m a genius investor ? Fuck no. That means I won the lottery. Try doing that every single 3 months. I guarantee you cannot. Fucking imbecile | |
| 1) Speak for yourself. Your performance and losses aren’t correlated to mine, not sure why you’re even attempting to make a comparison to yourself. | |
| 2) I understand my own risk tolerance and I capitalized on that to increase my returns. I made 10x because the opportunity was there; I never said this was my set target every time. | |
| 3) My question was clear - how to create a fund. | |
| What’s with all the angry trolls on this forum?" | |
| Ex-Goldman Sachs Compliance Analyst Charged With Insider Trading,29,https://www.thetechee.com/2021/09/law-ex-goldman-sachs-compliance-analyst.html,"Of course. Most do it! | |
| Most do it. Idiots get caught.. | |
| I’m curious, isn’t “information availability” the standard by which insider trading is determined? What determines legitimate versus fraudulent trading information? | |
| Personally, I find insider trading the norm & not out of the ordinary. I guess what they r NOT supposed to do is act/trade on info not made public yet. It’s sorta hard to prove. How many get caught per year? 1, 2?" | |
| How To Start A Hedge Fund And Manipulate The Market,27,https://www.reddit.com/r/hedgefund/comments/l7808m/how_to_start_a_hedge_fund_and_manipulate_the/,"Now I'm confused. Was this a sarcasm or facts? | |
| Isn't that the point of investing, profiting of peoples losses? | |
| Both rammed into one post | |
| As sarcastic as it might sound ... that's 100% full of facts | |
| No. Investing is profiting off of the success of the investment. You put in money so a business can make or do something and give you future profit to hopefully pay back the loan you gave to the business. Market Manipulation is a crime that profits off of peoples losses. It is extremely difficult to find thanks to continually decreasing taxes that remove the ability of the government to regulate the markets and keep up with technology. Every time a politician calls for lower taxes on the wealthy, this is why. It isn't for just the additional 3% on income over $250,000. It is because the government will not catch them making the taxed $5 million illegally. | |
| you are speaking the language of gods" | |
| Can you make an LLC and treat it as a fund?,28,https://www.reddit.com/r/hedgefund/comments/n5nszh/can_you_make_an_llc_and_treat_it_as_a_fund/,"Assuming you mean hedge fund, the LLC you create would be a Cayman Limited Liability company which needs to be managed by an investment manager (usually licensed where you are domiciled). The cayman entity would be tax free assuming you don’t have any economic substance in cayman but you would transfer your performance fee if any to your investment manager at whatever country which would then be subject to local tax. In the Tesla instance I’m assuming they just treated it as a hold co to hold those assets however in your case I’m assuming you will be trading much more frequently. | |
| Depends what state and if funds are crossing state lines. In my state, South Carolina, you're allowed to legally pool funds from up to 25 different entities/people without having to register your pool of funds as a security in SC as long as you don't violate other SC laws, unless funds cross state lines which makes it a federal issue. But even so, pooling funds in SC without having to register it as a security involves more than just limiting it to 25 different entities. | |
| Unfortunately with an LLC you will still get taxed on capital gains, and those taxes will just pass through to the partners in the LLC. The only efficient thing about it is that you are investing a group of people’s money, but there are no tax benefits unless you hold everything for more than a year and harvest losses properly. | |
| Bump for same question in Canada | |
| From the research I found its dependent on state laws. For Florida I filed for an llc, would next need to get a series 65 to serve as a fund manager, and then would need to register it with Florida if it exceeded certain parameters(dollar amount OR client amount). If your plan is to get clients this is the best legal way to do it. I'd wait till you had a book and ran it a year though personally. Also you can call your state and they'll walk you through the individual process. | |
| Basically it seems that you just want to invest as a company, but for the sake of image call it a hedge fund? | |
| YESSSSS RAY JOIN US WORSHIP AT THE ALTAR OF SATOSHI WITH US MY FRIEND🤪 | |
| I wouldn't say overly frequently, just buy and hold and occasional shifting from one stock or crypto to another. Treat it more as a family fund thats tax-free until we pull out kind of like a retirement account. Is that possible through an LLC? | |
| So would the losses fully carryover to the next year or just $3000 at a time like retail investors? | |
| It would just be a little family fund. I want to do it as a tax-free investment vehicle kind of like a Roth IRA | |
| EDIT: Except taxed when money is withdrawn (or distributed etc) | |
| That’s everywhere. A series 65 is needed. Cost is way higher than $150k like op thinks. More like millions. | |
| I dont care about the name. Just want to invest as a company for tax benefits | |
| It isn't. Tax residency is based on where you are physically based. | |
| I believe it would still be $3,000 at a time. For example, if we were investing out of an LLC fund and the operating agreement called for a 50/50 split. If we racked up $6,000 in losses, we each would have maxed out our $3,000 allowable loss for that year. | |
| The main reason to set up an LLC is that it’s the easiest and most cost efficient way (note: not tax efficient, cost efficient)—setting up a fund in the Cayman Islands or a reinsurance business in Bermuda will be more tax efficient, but you’ll probably need to hire actual lawyers, which could cost tens of thousands of dollars. An LLC just allows you to invest for other people and organize investment decisions, but it’s as if each individual owner of the LLC is investing himself. It made a lot more sense back in the day since it cost a good chunk of money to place trades, so it was cost efficient to pool money in an investment club LLC and buy one big chunk of XYZ stock than each individual partner calling their broker to buy shares, and each paying a commission. | |
| Which costs are you referring to that add up to millions? Legal costs are a big part of it but in a lot of areas those aren't millions. | |
| I get ya ok. So investing your capital gains won't count as a business expense? | |
| ​ | |
| Can you explain why Amazon can reinvest and carry over the losses for future taxes then? | |
| Can you clarify the question? Amazon isn't a hedge fund. | |
| Investors can carry on their losses too, they just can’t claim more than $3,000 in a year. Anything more than $3,000 they can use in the future. | |
| Corporations like Amazon aren’t taxed capital gains. Their investments profits are taxed at the corporate tax rate, and are part of their corporate income/loss. Thus their losses, even from capital gains, can be used to offset their overall corporate tax bill. | |
| Sure, I mean Amazon as an entity can reinvest its profits in itself and carry the losses forward (not just $3000 like retail investors). So given the LLC (or a different entity that serves the purpose better) would be reinvesting any capital gains in itself (thus negative cashflow) or if it just takes a loss, why can't the loss be carried forward to future years? | |
| Ah, so if the LLC is taxed as a corporation, you can reinvest capital gains and declare it as a loss then? | |
| Also, corporations (and this LLC) can utilize more than $3000 loss in a single year then correct? | |
| Cause you’re not a corporation frankly. That’s a big corporation with tax loopholes and they provide millions of jobs to Americans. Corps are taxed what ever is left from expenses and profits. Obviously they can work around it as well and pay close to 0. Corporations that are actual businesses or real estate holdings, financial markets/services or a holding company don’t get the tax benefits that you think | |
| Corporations can’t re-invest capital gains either without being taxed. When I said they aren’t taxed capital gains, I meant that they aren’t taxed at the capital gains rate, but those gains are still taxed just as regular corporate income. | |
| Whether your LLC gets taxed at the corporate rate depends on what it does. If it’s just an investment vehicle, the IRS will just treat it as a pass-through entity. | |
| I recommend you set up an S Corp instead. | |
| Got it ok, so for corporations, profits and capital gains are treated separately then? | |
| So, if Amazon invested in infrastructure, they can write off future profits, but they can't write off future capital gains they make via stock investments? | |
| No, for corporations, capital gains are treated as regular profits for tax purposes. For individuals, capital gains are taxed separately from regular income and have different rules. | |
| Oh so the main difference is if its just an investment vehicle or not? (When it comes to applying more than $3000 tax loss per annum I mean) | |
| Sort of. Amazon is a business, they make money selling products and then they get those profits and reinvest in the business by buying new plants, R&D, investing in infrastructure, etc. They are not buying and holding securities. | |
| If you think about it from a government point of view it makes sense to allow Amazon to do this because the money they reinvest is benefiting the economy (in theory) because it’s producing more jobs and generate tax revenue from sales tax in the case of property. | |
| Investment vehicles don’t get the same tax advantages especially when the holding period is less than 1yr because the government doesn’t really benefit from you buying and holding something for less then a year. | |
| Check out this video. Mark Kohler does a great job of explaining the advantages of an S Corp over an LLC | |
| https://m.youtube.com/watch?v=Y9Act--MkIc&feature=youtu.be" | |
| AMA - Former options trader at major electronic hedge fund/market maker in NYC.,25,https://www.reddit.com/r/hedgefund/comments/j2zoq0/ama_former_options_trader_at_major_electronic/,"What’s your level and total compensation? | |
| What’s your advice for someone who wants to trade stocks with their own money? What are the best trading books to read? | |
| What typical characters and qualifications of people do these firms hire to be traders? Do you need to start as a graduate? | |
| In your opinion, is pursuing a CFA a good way to break into a HD? Or is a Masters/MBA program a better route? | |
| Noticed on a earlier response as well that risk tolerance (sports gambling, poker etc) make for a good candidate. Care to elaborate on how to utilize these interests to standout as a candidate (coming from someone who has a great interest in those hobbies)? | |
| What’s the name of your VC fund for start up | |
| [deleted] | |
| What advice would you give someone who is about to graduate from college and wants to get into trading? I have good grades but didn’t go to a big school so I am worried if I will be able to even get an interview with a big name firm | |
| What would be your advice for breaking into a multi-strat (with experience)? | |
| What’s the minimum age/experience they would require to be a portfolio manager? | |
| What’s comp look like for quant traders vs quant researchers? Do the researchers get a % of profit pool? | |
| Coming a bit late to the discussion... currently working on data science at an Asset Manager company. Im thinking on getting a Masters in applied math. Do you think that will help me break into the hedge fund industry (more interested to be a quant than a trader). I hold a math BA and a financial engineering BS. | |
| Also, any recs on links that I can practice interview questions? | |
| I was a junior trader with compensation of 300K (most in bonuses). Some friends in shops with a better bonus incentive structure is set to fetch 500k this year thanks to the volatility. | |
| My advice is to figure out where you have an advantage. As a retail trader this would typically be in an area of domain expertise. Essentially you need to know more about a stock or industry better than Wall Street analysts - hint: they don't leave their office much and generally focus on large cap tickers. | |
| There is no way you can compete in short term strategies, so look to placing longer term bets or macro strategies. Good options primer is Natenberg. Otherwise it is just getting a free simulation terminal and playing around with it. Make decisions, rationalise it, and see what your PnL is. | |
| Honestly I am quite convinced you don't need any qualifications. That being said they look for indicators of quantitative ability such as a STEM degree with 3.5+ GPA, you having a tolerance for risk by playing poker or sports betting. Much of it is how you perform in the interviews. | |
| That being said, the typical recruit is a mathematics gun. My colleagues were math olympians, poker players, chess players, hard sciences undergraduate and even a magician. | |
| So I would say in blanket terms that most people are extremely risk adverse (or if you are on WSB extremely risk loving). You need to have a healthy relationship with risk, and be able to justify why you are making certain strategy decisions. This makes chess, poker, sports bet etc great litmus tests for if you are good candidate for trading. | |
| So if you want to go the IB, PE, PM, FM or other hard corporate financey stuff, definitely do CFA. If you want to be a trader, get a mathematics degree. If you want to be a quant researcher, get a PhD. | |
| I am bootstrapped and have not raise any money. It is honestly still super early days. | |
| I think retail volume still pales to institutional volume. The main driver for stock rally is the risk free return being basically 0 in bonds. People are forced to seek alternatives such as AAPL that gives a higher dividend. If the risk free alternative in safe bonds was say 6%, you will naturally see people jump there. | |
| The stock rally is pretty much a positive feed back loop of upside punting, MM hedging buy buying stock, and there being demand for stock as the better investment option. | |
| They dont care too much about your school. I would say get 50+ on zetamac.com base settings, get super good at probability, brain teasers and thinking in terms of odds. | |
| If you want a handbook I give to all my clients, feel free to PM me. It is not free but it has all the basic information regarding the process (pretty much what I summarised above but in greater detail) | |
| Not too sure. Portfolio management is outside my knowledge. | |
| Traders have a lot more bonus inbuilt. Quants typically get a bit more base but less bonus, unless they are quants that trade as well - then they make millions. | |
| That’s great. How come are you now a “former” trader? | |
| Good luck . I am kinda in the same boat, soon to be in the market to raise cash once my MVP is made | |
| If I can get a stable return of 6-7% for almost risk-free investments (I’ve been investing in this instrument for more than 6-7 years without any default or loss). Would you say I’d be better off than stocks markets? (I’ve been trading since April this year and return is 3-10%) | |
| > I would say get 50+ on zetamac.com base settings | |
| Is that hard? I started out with 16 score, now after like an hour of practice I get 25+ consistently. Is it like something you need to practice for dozens of hours to get to 50? | |
| PS I might ask you more questions later down the line, this AMA is very interesting for me and I want to thank you for doing this | |
| Lifestyle change. I realised that solely making money did not fulfill me. What mattered is how I made it. Currently focused in ML/AI research and working in startups. | |
| There always is a caveat to 'risk free' 6-7% return. I presume the risk of default is low, but if exercised you will be wiped out. I have no opinion on this matter, as I do not have enough information to make an informed decision. Also don't take financial advice off someone on the internet! | |
| That’s inspirational. Thank you. Did you work long hours as a trader? Was it extremely stressful as people say? | |
| It was incredibly stressful. Hours were short but intense (about 10 hours a day). It required complete focus when you are training, as any slip up means that you are canned. | |
| I pretty much woke up and went to bed thinking about options. You pretty much need to be Kobe Bryant Mamba Mentality obsessive about it." | |
| Is tech guru Peter Thiel right about China using cryptocurrency as a financial weapon?,19,https://www.matthewfeargrieveonline.com/post/will-china-deploy-bitcoin-as-a-financial-weapon,"Usd or Euro etc are Fiat money. | |
| Corrupted worthless stuff | |
| FIAT currencies and especially the dollar, are a tool dominated by the elites to rob us and therefore enslave us. | |
| The Fed and its banks print all the dollars they want, devaluing the value of the few dollars that working people have in their power, and that they have obtained by working, that is, with hours of life and effort. These slave leechs just print more dollars and steal a little bit of value from everyone. | |
| They are like the cancer of humanity. then they go with their investment funds and buy the corrupt politicians and the press, undermining democracy just to stay in eternal power. | |
| In perspective, these leeches are worse than the CCP. I have lived in China, and neither the CCP is that bad nor are western democracies that good. | |
| We are not truly democratic by the fact that we vote every 4 years what the media and the educational system want us to vote, after indoctrinating us. | |
| We live in hell, in a matrix, but nobody notices. Nor is it fair that geniuses and fools have the same value by having the same voting power, or that lazy people can vote on the work they do not do with equal value as a worker. | |
| Democracies are an corrupted perverse trap system. There is no more blind than he who does not want to see! | |
| Decentralized crypto is a global revolution, never seen before in history. If they defeat Bitcoin, which I think will not be possible because it is anti-fragile, a stronger successor will emerge, because many people have woken up globally and taken the red pill. | |
| Crypto is a weapon for any players that want to challenge the USD, fiat currency, and financial payments status quo. So China is one. So could anarchists or gold standard advocates. Libertarians, PayPal, futurists, the list goes on. There are plenty of groups that would benefit from a less US centered financial system | |
| China uses the very movies we watch as a weapon against the United States. China uses our college curriculum to hurt the United States. China uses disease to hurt the United States. Would China use money to hurt the United States? Does a dog eat kibble? | |
| Maybe worry about your so called “guru” that’s really a piece of shit instead of problems abroad. Dudes part of the reason United States is so good at sorting and sifting through every bit and piece of us citizen metadata and surveillance. | |
| [deleted] | |
| Very impressive comment. You have done your homework. Can you give some more detail about crypto currencies? Do you think that’s why they are as popular as they are? Could they be used against us as a weapon of the elite to further suppress people? | |
| You had me until you said the ccp isnt so bad. The only thing worse than democratic elites are communist elites. Both systems are trash and the people at the top in both exploit the people on the bottom. | |
| “Democracy is the worst form of government, except for all the others.” Churchill | |
| I agree that crypto is the next evolution of governance, however the rest of your comment is garbage spewed from r/conspiracy. | |
| We don't live in hell we live in a society | |
| So you think that some people's votes should count more than others based on their education level? 🤔 | |
| Yes, of course it challenges USD. but USD don't means USA or his people, because they are just slaves of the system, starting the day the gold was confiscated and continued when USD lost his gold backing. | |
| That said, USA citizens will probably lead the crypto revolution, and Probably Satoshi Nakamoto is a group of patriotic people living in USA where software ist much developed than enywere. | |
| Yes, of course China is the biggest USA enemy, but the Hollywood millionar business people who take China money are also USA enemies. | |
| My comment was misunderstand, maybe because English is not my language but Spanish. When I mean that the CCP is not as bad as they say in the western media, I refer that life in China ist not hard: I couldn't see a single homeless in 1 year there visiting 14 cities; try it in USA. | |
| Western system is also very hard for a lot of people, we are all kind of slaves. | |
| Anyway I hate communis and I prefer western culture, so I hope USA don't get communist as it look like. | |
| Ever heard of crypto? | |
| This is one of the reasons that Crypto is here, but they are popular also within people who just want to speculate or who wants to be safe against inflation (the robbery). | |
| They can try to use the crypto against us, as the Chinese CCP will try to use their own Yuan crypto to control more the people. | |
| China banned crypto 4 times already, with no efect: I bought all my crypto in China through Alipay and Wechat-Pay with VPN. | |
| At the end it will not work for them, because they own all the gold, but if everyone gives a F*** about gold it will lose its value, as will do FIAT Currencies. They can buy 100% of the bitcoins, so people will create a better one. It's a changing game, and media and education are desperate to try to stop it. They can do it with more than 50% of the people because they have no brain already (and this was caused for sure with controled medicines and vaccines, food industry and culture manipulation) | |
| I’ve been living in China for over a year now, and I totally get what DerCorlione means. Western media is very biased and paint a picture which is not coherent with reality. | |
| Of course those 2 say the CCP is not so bad, and of course their comments support each other. They are also very nicely complimentary to each other. So they must be right. Everybody take the red pill now!! Just don't mind the smell of rotting bodies, because communism has a stark history of tens of millions of deaths in the last 100 years. Ideologues always think they sound so smart when they're talking down to the people that know better. Political parties in America do seem to walk in lock step with some of these folks. It's the easy way. Going along with mobs. | |
| ""We live in a society, people!"" --George Costanza | |
| Yes, I belive it! but depending on the matter. | |
| For example, a doctors vote on a healt law should be minimum 100 times more than mine because I have no idea about healt. | |
| Religion or Morality laws not. | |
| The CCP is as bad as every Chinese person I know that has fled that country tells me. It has nothing to do with the Western media. Nothing! The Western media did not wipe Tibet off the face of the map. The Western media is not trying to wipe Hong-Kong off the face of the map. The Western media is not running concentration camps in China. The Western media does not pollute the ocean all around the edges of China while keeping the inland clean for the citizens who don't live near factories. The only slavery you are experiencing is the slavery of your mind. Only you have the power to unchain those chains. | |
| Im sure its mostly ok for the average person most of the time totalitarian regimes are. But for the people they persecute theyre not so nice. Not to mention the fact that they control the peoples lives and economic activities. | |
| I lived in China 20 plus years and how are you connecting to Reddit? Oh right illegally with a VPN. | |
| There is no perfect system | |
| You was never in China and you allow you to discuss the Matter! | |
| I use to discuss only about what I know, try the same please. | |
| By the way, when I speak about ""modern slavery"" I fortunately don't speak about me, because I'm an investor who don't need to work for living, I have economic freedom. But nearly everyone I know works hard for their FIAT money and are stolen by bankers inflation. | |
| I understand, but I don’t think anything they do is better or worse that what western democracies do directly and indirectly. | |
| VPNs are not illegal in China. Actually, you can ask for a VPN connection from China Unicom directly. | |
| You do not know me sir or ma'am. And as such as you are trying to dispense such advice, please discuss only that what you know. And if you feel stolen from, then call the police. | |
| Some are. Yes there are licensed VPNs that are state approved. State approved are they still really VPNs ? Other then allowing you to bypass the GFW … are they really virtual private networks? | |
| VPN are illegal in china! | |
| Everything is illegal in China if not controlled by CCP! | |
| Trading crypto is illegal in China, and now also mining crypto. | |
| Looking into the Internet is illegal in China, you can only acces what CCP wants. | |
| BUT: | |
| Try to speak free in Twitter, Facebook, Instagram, YouTube, etc. | |
| Censorship is private managed in western countries, so we are as fuck as an average Chinese citizen. | |
| You take it all wrong. | |
| I Don't have a single USD in my portfolio, so the USA government cannot stole my wealth. | |
| If you have USD, try to go to the police to ask your 4% of wealth stolen by the government by inflation. Even if its an official 4%, good luck! Police work for the government, not for you. And, to tell someone to call the police for the inflation wealth loses is just ridiculous. | |
| You’re entering a technicality zone there. No place is paradise, I just think there is an unfair bias against China in western media. | |
| No not at all we are not like the average Chinese citizen. If you think you are living in slavery, I can assure you you would not be living in slavery in China. Except for they don't like brown or black-skinned people. Go give it a try. | |
| The American media actually alters its movies to please the Chinese government. And yet somehow you want to try and convince people the American media is anti-China? That's a not true. | |
| You are 100% right about racismus against black people in China, it's open and never saw it in any other country. But their are racist also against any foreign. There are hotels who don't acept foreings, you can check it in internet . | |
| The connection is not coherent." | |
| Pershing Square Holdings - Performance vs the S&P 500,19,https://i.redd.it/ikkjm0w6g3471.jpg,"What did you think about QFIN, MANA (decentraland) and Hear? | |
| Want to share QFIN, HEAR, MANA (decentraland) opinion. | |
| QFIN - PE:8 , earnings had been increase massively | |
| HEAR - Marketcap is low and revenue is quite stable and have high potential. | |
| MANA - recently partner with Sotheby's and think that this cryptos had high potential. | |
| What did you think about my opinion? | |
| Good thing he bought back all those shares at the low" | |
| Hedge fund on blockchain,19,https://www.reddit.com/r/hedgefund/comments/pi6u8e/hedge_fund_on_blockchain/,"Ok great idea but your business plan lacks a lot of important details. E.g. recourses required (human technical), cost, time to market to name some. | |
| And who funds the project? | |
| These are all important... | |
| Here is something similar for you to take a look at | |
| * [https://app.dhedge.org/#](https://app.dhedge.org/#) | |
| * https://duckdao.io/ | |
| I don’t know the details but is this akin to what Numeraire (token NMR) is trying to accomplish? | |
| Also: | |
| Who houses the data used to make the analysis for each options strategy? | |
| Is this truly decentralized if only one centralized entity decides on what options strategies can be included in the mix? | |
| If anything, this may make more sense possibly as a third party allocator platform on a permissioned blockchain, catering to funds of funds (with each participating fund acting as a node). | |
| Yes, and the blockchain technology behind | |
| Thanks I will check it out | |
| I wrote in my paper the difference between my project and Numeraire. Their focus is for the participants coding their own strategies onto the blockchain. My idea is for the strategies to be built in by real hedge fund managers, but the buyers of the tokens will choose strategies they wish to activate. | |
| This project is in its earliest stages. My first goal is to find a respectable hedge fund to enter my team and supply strategies to code into the smart contract. Once I have the hedge fund on my side, it would be easier to find a blockchain expert to assist me and to find investors. I already tried contacting some experts on the blockchain world . | |
| My project is meant to be a social platform where the users feel they are active participants and not just innocent bystanders. A decentralized blockchain places all users on the same playing field. The strategies are not decided by any central authority rather the algorithms would create a number of positions which the owner of the tokens would decide the ones they believe will the most successful. | |
| I agree with all of you that the details must be ironed out but my first goal is to find a hedge fund who would be interested in this basic idea and after that we would find investors to fund the project and all other details. | |
| I really appreciate your comments and if you know anyone who be interested in this idea please contact me. | |
| Look here is my straightforward answer: e.g. I'm interested and I run a hedge fund. I'm discussing with my team ICO and we are in the early stages. However, without giving me the details I mentioned in the above post my answer would be ""Nice but..."". I think all the tech funds there would give you the similar feedback and ask you similar questions. Hence, if you really want to work on that project, I advise to expand your document. | |
| Finally: if you tell me, ""look I first wanna check general interest and then invest more time in the idea.."" I'll ask: are your really committed? | |
| 15 years of startup(s) experience speaking here... Hope that helps and all the best... | |
| I really appreciate your advice. I already have one hedge fund manager who really likes my idea and plans to invest with me. He plans on finding me a quant hedge fund to join my team. I am currently taking a class an online class on blockchain on Columbia university. | |
| I contacted One of the professors, Scott Stornetta, and his VC company created me an account on Yugenpedia. You are correct that there is many details I am missing and I cannot answer many of your points yet, however hopefully within the next few weeks I will speak with different people and iron out the details and have a more detailed project. | |
| All the best! | |
| It sounds like you have dev experience, but no hedge fund experience, and are working towards a blockchain credential. I suspect that you will continue pursuing this path, regardless of the comments here, so the best I can offer is a few of my opinions. | |
| Your idea isn't all that bad - there's definitely a market for bringing institutional investment opportunities to retail (i.e. Cadre, YieldStreet, etc), but few using blockchain (most of the one's I've come across that apply blockchain to this concept are focused on real estate, I suspect due to regulatory reasons). Just keep in mind, that these platforms are effectively centralized repositories of whatever strategies they offer (which was what I was referring to about how this idea is actually not fully decentralized). | |
| I have a few contacts at quant funds, and to my understanding, a lot of them will update their strategies by changing a few things (i.e. add/subtract a few factors in some of their models, adjust the weightings of existing factors, etc), and they usually have multiple models producing outputs to go into additional models, so it would be difficult for a hedge fund to just say ""here, take this old model"", because they may still be using some iteration of that model. There's also the issue of data - how/where are you going to source/store all that data that feeds into the algos (especially if that hf uses alt data that they pay for), that's output from the algos? | |
| u/kwhahn also gave some valid points on his comment on one of your cross posts - even with older models, they will not want to make these models public. I'd also add that you'd have to trust the hedge fund completely to not give you a bogus model so that they can directly front-run Kapital's trades. | |
| If you really want to pursue this idea, why not focus on building an MVP? You can take existing algo code from Github (or other data science trading algo forums), and build your smart contract to do its asset allocation on those strategies on a paper account, and use that to raise funds. I'm certain there are blockchain VCs out there that will be willing to invest if you can prove out an MVP. | |
| Personally, I think a better approach would be to expand on that asset allocation application/smart contract, and build it into a platform on a permissioned blockchain like Corda. Larger multi-strat asset managers and fund of funds have quants focused on just asset allocation strategy, and cap intro is a pretty large part of investment banks' businesses, but if you can build a platform that can act as both a marketplace for funds and automate the asset allocation work, this could provide a lot of value to both sides. | |
| Also, is there a particular reason why you want to build this on Ethereum? | |
| Thank you | |
| If you are ever interested, my email is on the link I posted | |
| Hi | |
| I am part of a team working on a new blockchain start up. | |
| Our project consists of a local currency ecosystem where tenants receive tokens backed by real estate, every time they pay rent.Tokens are issued from a DAO foundation which invests in local real estate and increases the value of the community. Tokens are accepted by the community stores and businesses as currency. Our website is Tenanttoken.org. | |
| I attached a link to our pitch deck https://drive.google.com/file/d/1ymyGnAKbr2W_UHfsWx00RTREJuYXq-Jv/view?usp=drivesdk | |
| Thank you I really appreciate your advice. I agree with you that it’s best to start with an MVP to get a feeling if people believe in the idea. Their would be no purpose to spend all my time and money for a project which the world doesn’t believe in. | |
| The reason why I decided to look for a Hedge Fund, is to give my project some validity and trust for the investors. | |
| If the Fund would be a partner of my project they probably would not deliver a bogus model since they would be shooting themselves in the foot. | |
| In theory the main idea of my project is to create a social environment where all of the members are “regular” people but still have the power and the ability to get involved in more complex investments. This is the reason why I thought a blockchain would be the best protocol since Blockchain is a peer to peer network where everyone is together as one team. Therefore you are probably right, I can start without any hedge fund and get algorithms from other areas and if it’s successful then it will be easier to get a fund involved. Also your idea sounds interesting I would have to look more into it. | |
| There is no specific reason for choosing Ethereum, I just picked it since they were the first to invent Smart contacts. Probably when Cordano begins allowing smart contracts, they would be cheaper than Ethereum. | |
| Thank you again for your advice and If you have any other points to make please tell me. | |
| >I agree with you that it’s best to start with an MVP to get a feeling if people believe in the idea. | |
| MVP might be enough to get VC investors interested. The larger VC names giving you seed money may be enough for validity. | |
| ​ | |
| >If the Fund would be a partner of my project they probably would not deliver a bogus model since they would be shooting themselves in the foot. | |
| Why would they be shooting themselves in the foot? For a ""respectable"" hedge fund focused on an options based strategy, they'd have to have at least $100mm AUM (this would mean the main founders/partners would have some sort of credentials, and perhaps some backing from their former hedge funds). Any less and they'd just be a small no-name hedge fund. These sort of hedge funds wouldn't put any more than $1mm in an idea like this. | |
| So what's to stop them from giving you an algo to buy a bunch of call options, then use $50mm to short the stock to drive the price down until the cost of the options triggers a stop loss on the algo, then cover both the short and the call? Could work the other way around with puts. | |
| After all, it's not their own money that they're investing. And they can also say that the strategies that they gave were not properly applied (i.e. blame your smart contracts), so their name doesn't get dragged through the mud. | |
| Case in point: RenTech is one of the most famous hedge funds with an in-house fund and an external fund. The external fund doesn't do as well as the in-house fund (in fact, in 2020, the external fund lost money while the internal fund made money). Not saying they used the internal fund to front run the external fund, but negative headlines from the poor performance of the external fund didn't really affect their reputation. | |
| It sounds like you don't have a background in algo trading; perhaps it may be worthwhile to find a co-founder or an advisor who has a background building algos for banks and/or hedge funds - this may be enough to meet your credentials/trust needs. Someone with a background of setting up hedge funds (from an operational/compliance/accounting perspective) would be helpful for you as well. | |
| Also, I'd suggest starting with equity, rather than options - may be less of a data burden, depending on the strategy. For instance, I would imagine a simple equity pairs strategy using equity would require less of a data burden than executing this strategy using options (since with equities only, you don't have to worry as much about Greeks). | |
| ​ | |
| >I can start without any hedge fund and get algorithms from other areas and if it’s successful then **it will be easier to get a fund involved.** | |
| If you can build an MVP and get VC backing, you may not need to get a fund involved. There is enough demand for diversification from institutional token investors, where something like this could work. There are many defi projects, where aggressive marketing on forums is enough to build up demand for a new token. The issue with retail, however, is that KYC may be difficult, local securities laws may prevent you from selling to retail, and redemptions would be difficult to manage. | |
| ​ | |
| >There is no specific reason for choosing Ethereum, I just picked it since they were the first to invent Smart contacts. | |
| They also have some of the highest transaction fees and longest transaction times. May be worthwhile to look into Algorand (there are a few others as well, like Solana). | |
| I agree that starting with regular equity is probably more efficient and less risky and a lot easier to program than complex derivative strategies. | |
| You are correct, I don’t have much knowledge in algo trading and would need a professional in that field to assist me. | |
| It seems like you are extremely knowledgeable on finance, hedge funds, blockchain and many other topics. Would you have any interest in joining my team? | |
| Thanks for the offer, but I do not think I would be the best person to join your team. | |
| I'd recommend someone with more of a background in either: | |
| * quantitative equities trading | |
| * hedge fund back office (either on the accounting side or legal side) | |
| * IR/Cap Intro | |
| * security tokens" | |
| Support your local shrubbery today!,17,https://i.redd.it/xypwy1tkfpe61.jpg, | |
| Hedge Fund Billionaire Michael Platt,17,https://www.reddit.com/r/hedgefund/comments/ght53a/hedge_fund_billionaire_michael_platt/, | |
| How To Start A Hedge Fund,16,https://www.reddit.com/r/hedgefund/comments/sv78tr/how_to_start_a_hedge_fund/,"average fund manager launches at age 40. | |
| you need a to build a track, definite/refine your edge, prove that what you do others cannot, and focus. Build it and they will come. Scale is always an enemy of performance. | |
| Raising capital is easy if you're good at investing. You're going to need a long track record for most investments. | |
| You also need an attorney and a CPA. The paperwork and SEC registration will cost about $45k +. | |
| If you raise from friends and family, you don't need disclosures. But - - if you get any money from a stranger without the proper forms and they lose money, you are fucked. You will serve time in prison and you will be forced to pay restitution. | |
| So... | |
| 1. invest your own cash | |
| 2. prove your skills | |
| 3. make a business plan | |
| 4. raise money from friends and family, continue to prove your skills | |
| 5. Assemble your legal team | |
| 6. Raise hedge funds | |
| Why would anyone give you money? A substantive answer to that question will determine potential next steps. My firm has seeded various HF managers whose principals are in their 30s. | |
| In each instance where we were an anchor investor, we had exposure to the quality of the fund manager we ultimately seeded. This exposure came from working with them at their prior employer. In particular, we thought a given director had the expertise and ability to run a new strategy. | |
| Are you currently at a hedge fund? If so, do you have a personal track record at that HF? Why would an investor want to invest with your new fund instead of your existing/prior HF employer? What differentiates your strategy? How durable is it? Has it been tested in various market conditions (i.e., was it tested during the GFC it simply during the recent bull market)? | |
| You can look through my history as I've previously answered a similar question. | |
| Following, interested in this as well | |
| [deleted] | |
| Build a good track record…………plan out each single detail of the structure you are looking at…………….also have some visibility……………..then go for it if you feel the moment is right, timing is everything…………by the way, a normal setup these days moves around GBP 100k starting costs………. | |
| Check out “Investment Fund Secrets” by Bridger Pennington, he goes into how to find investors without doing more schooling. Honestly a really good course, I used to work for him. | |
| Where are you located? | |
| hey OP, | |
| where are you now? Going for MBA? | |
| Message me | |
| I can attest to this. I currently work at a young, startup quant fund and over the 9 months, I’ve learned how difficult it is to raise capital. This industry involves a lot of trust and a track record for performance. | |
| We actually just had to close one of our funds. We tried to scale quickly and opened 3 funds to target different audiences. It became apparent that we didn’t have the resources and operating capital to develop all 3 funds over the next couple of years. | |
| Thank you for commenting. I was thinking about going the FLP or LP route and raising capital through friends and family but I believe the lawyers, CPA, and paper work alone would cost more than what I'm actually raising from people I know so it wouldn't be worth it unless I'm pooling a big amount of funds. | |
| Thank you for commenting. I'm not at a hedge fund currently but for me to work in one I've been told many times to get my MBA from a top 5 program so it seems I may have to work under a fund manager before actually pulling this off. | |
| Are you also starting a fund? | |
| Did you start your venture? Are you guys hiring? I have background in data science and software engineering. Wondering how do I break into the industry | |
| You cannot take money from friends or family in an incubator fund, though some people call a fund that has yet to accept non-friends or family money an incubator colloquially. | |
| In the context of not having to have the costs associated with a ""legit"" fund and avoid regulatory filings, etc, taking *any* outside capital other than your own would trigger those obligations. Naturally, you may think you have *less risk* because your friends/family are less likely to take action against you if something goes wrong, and therefore you can potentially get away with crappier fund formation processes/docs/etc, but that's not even close to *no risk*, especially because money changes relationships. | |
| The point of an incubator fund is to, utilizing your own capital, silo a substantially similar (and likely to-be-audited) strategy that can be used for marketing/pre-marketing which is very tough/unlikely to be possible with your PA. | |
| So I do agree that an incubator fund is a possible route here, but OP should definitely not think that allows him/her to take outside capital of any kind. | |
| So I've heard. Now I understand the old saying, to start a hedge fund first you must be rich. | |
| Thank you I will give it a look. Thank you for commenting. | |
| His stuff might be ok and his own fund might be legit - I don't know | |
| But his program is 25K (if it's good, still fair value IMO). | |
| But just looking at the sort of client types he attracts... are the social media marketing MLM type of people. | |
| I know at least two of his clients who I won't name here who can't even make a financial model and seriously draw lines on charts to ""trade"" - both did his Black Card program, opened a fund, and one has raised a few M in capital from other naive people on social media. I wonder how much of Bridger's entire business is really a product of ZIRP and just frothy monetary policy. Chickens coming home to roost now. Social media traders on IG (20 somethings, not legitimate advanced derivatives traders with actual experience) are not legitimate. | |
| He should be targeting people in finance not these social media MLM people. That's why while his course may be good... it's a bit off putting seeing how uneducated/unsophisticated SOME - not all - of his clients are. Will see how 2023 plays out for their fund. | |
| Check your inbox | |
| Incubator for next 2-3 years to establish a verifiable track record then I’ll start the capital raising process | |
| Thank you for commenting check your inbox. | |
| [deleted] | |
| well, its like everything; you need at least something to create a new company…..also, you may start with other partners and give them shares in return etc. There is always a way, if there is a will…… | |
| further, it is relevant what strategy / markets you look at……..if its stocks, then you compete with the big buses………but if not, then not….. | |
| It seems if I want to jump start the fund early this may be the route I'll have to take" | |
| Market Making 101,16,https://www.reddit.com/r/hedgefund/comments/m4tpy3/market_making_101/," Thanks for posting. Learned something new | |
| Thank you. Do you have any useful resources on how to manage inventory risk?" | |
| Podcast interview with an ex-Renaissance Technologies employee,15,https://www.reddit.com/r/hedgefund/comments/s531o9/podcast_interview_with_an_exrenaissance/,"I vaguely recall an episode of the podcast Chat with Traders that featured an ex renaissance employee, and I know I’ve heard talk of linear regression on that podcast. I don’t know if it’s the same episode and I couldn’t find it by searching YouTube for key terms 😒 | |
| E: Aaron Fifield hosts Chat with Traders | |
| !RemindMe in 2 months | |
| who's the guest? | |
| I will be messaging you in 2 months on [**2022-03-16 17:39:55 UTC**](http://www.wolframalpha.com/input/?i=2022-03-16%2017:39:55%20UTC%20To%20Local%20Time) to remind you of [**this link**](https://www.reddit.com/r/hedgefund/comments/s531o9/podcast_interview_with_an_exrenaissance/hsxa747/?context=3) | |
| [**3 OTHERS CLICKED THIS LINK**](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5Bhttps%3A%2F%2Fwww.reddit.com%2Fr%2Fhedgefund%2Fcomments%2Fs531o9%2Fpodcast_interview_with_an_exrenaissance%2Fhsxa747%2F%5D%0A%0ARemindMe%21%202022-03-16%2017%3A39%3A55%20UTC) to send a PM to also be reminded and to reduce spam. | |
| ^(Parent commenter can ) [^(delete this message to hide from others.)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Delete%20Comment&message=Delete%21%20s531o9) | |
| ***** | |
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| |-|-|-|-| | |
| !RemindMe in 2 months | |
| I’m going to take another look but I didn’t have any luck finding it last time. Hopefully it’s one of my saved playlists. | |
| Alright preciate it man. Any luck? | |
| Unfortunately no, I thought it would be in the title/descriptions but it seems as if I’ll have to listen through a bunch of intros. | |
| Yeah no worries. If you do ever stumble across it again, maybe you'll post it in here and ill find it. | |
| Rentec is beyond revolutionary. So much mystery because of their returns, but I'm 100% more interested in the complex math behind their strategies. Wish they weren't as successful so it'd be more readily available lol" | |
| Don't let them trick you.,15,https://i.redd.it/nkgxk7m1vwe61.png, | |
| The largest hedge fund managers 2022,14,https://www.reddit.com/r/hedgefund/comments/xjdzsi/the_largest_hedge_fund_managers_2022/, | |
| Hedge Fund Startup,14,https://www.reddit.com/r/hedgefund/comments/uzwer7/hedge_fund_startup/,"I think you need to be a bit more specific with what it is you’re actually trying to do… | |
| What assets are you going to trade? | |
| What jurisdiction will you fall under? | |
| Do you already have a track record? | |
| Do you already have clients that want to give you money? | |
| Do you know the difference between a hedge fund, cta, or cpo? | |
| Theres a lot of things you need to consider… | |
| For a hedge fund you will be looking at $25,000-$50,000 to setup your GP/LP with an LPA/PPM. | |
| I highly suggest that you NOT do this before you have a simple track record which can be done fairly easily if you know what you’re doing. | |
| There is a lot to consider but lawyers will love to charge you $500/hr when you don’t know, lol. | |
| Okay here are few things to consider first of all : | |
| +A VERIFIED track record. And should or highly desirable that it is verified by a major company like KPMG. | |
| +The jurisdiction you want to operate in will heavily impact your finances. | |
| +Set up costs mainly Lawyers and Licenses... | |
| +Equipment for your number 2 and a Bloomberg terminal. | |
| +AUM fees and fees on profits. | |
| + MINIMUM investment ! Yes this is important, how much a client can invest will heavily reflect what quality you are providing. | |
| I will also have to say this out loud but this business is all about how you present youself, so get ready to splash some serious cash on Traveling, events and fancy shit to get your face out there ! Yes this is almost mandatory especially if you are starting from scratch. | |
| Attend every major conference and event worldwide and start hanging out in High end bars. Also please have a very nice business card, not those shitty cheap ones! | |
| All in all depending on the jurisdiction you are looking at $80k-400k startup fees. | |
| This is all I have to say, as your asked vaguely, my answer is also vague. | |
| not to be a hater, but if you have no reputation, and have never managed money for a larger firm, the likelihood of you raining any capital is very low. you will need a few things that i can think of, and i am not sure what the cost are these days | |
| 1. legal document, you need a General Partnership agreement, LP agreement and offering Memorandum | |
| 2. accounting firm | |
| 3. the third party fund administrator | |
| 4. prime broker | |
| 5. law firm | |
| 6. office space,you cannot manage money from your home if you are a start up | |
| ​ | |
| you need capital , and your friends and family will say anything, but until you have the check in your hand, the money may not be there. | |
| until you have a audited track record of 3 years, no institution will give you money, but i don't know your network. good luck | |
| Build a track record, have a rational for everything you do, document everything as transparent as possible and ideally, get experience in an investment firm. | |
| Series 65 400 | |
| LLP Registration 30 | |
| Initial Consultation 400 | |
| Legal 12500 | |
| Compliance Consultant 5000 | |
| Marketing and Finders Fees 7500 | |
| Total Startup Cost 25830 | |
| Annual Operating Expense | |
| Annual LLC fee (CA Franchise Tax) 800 | |
| Trading Commisions 400 | |
| Admin Costs 5000 | |
| Audit/Tax Fees 10000 | |
| Operating Expense 16200 | |
| I DMed you. | |
| I think the brief idea u mention is good. I kno a hedge fund guy & he told ‘we have so much $$ we don’t kno what to do with it all’. | |
| There r many ppl & co. Who need fund$ but can’t get lending. | |
| No LP is going to give you money without a track record. Really sounds like you're trying to prop trade your own money, which there's nothing stopping you from doing. | |
| Appreciate the insights. Have you read any books on the subject? I edited the post to add a little more info. | |
| Thanks for bringing up those talking points and setting some expectations. Do you recommend any books to go into further detail? | |
| I'm working on something similar, DM me if you want to share resources/tips | |
| Why not post it here for the rest of us as well | |
| Understood. I’m starting it to officially begin my track record. Then when I’m ready to take on $$ and investors are ready to sign on I’ll already have the legal framework in place. | |
| No worries. | |
| I have been trading securities now for over 20 years, options and futures 15 years. | |
| My mentor runs a CTA/CPO. | |
| I have been working with him for the last 5 years learning the in and outs and getting all my licenses. | |
| Yes I can, What investment strategy are you following first of all? | |
| Your planning on opening a fund? I’m curious if you would incorporate it as an LLC, There are plenty of funds that are structured as an LLC. | |
| I’ve been thinking about this for a while, I have good returns and I can network to find some interesting folks to put the fund together i just don’t know where to start. | |
| Being real, there wasn’t anything to add. Just wanted to start an open dialogue being in the same boat 👍 | |
| That legal and operational framework costs a lot of money which I'm assuming you don't have. Most funds don't start from nowhere, they have seeds that help them with this. The easiest way though would be to hire a third party fund administrator. | |
| What licenses are required? | |
| Stock/option equities as well as event driven is where I’ll start. | |
| I have my series 65 passed but I shouldn’t need that for a standard syndication. I think in this case there would be an LLC and LP. I would he the managing member and general partner respectively. Would be interested to hear more as well. | |
| From my currently limited understanding i can do quite a bit on my own with legal templates to get me close enough for now. Yes I’ve only got 50k to trade with and I totally get that’s pennys. But it’s what i have so that’s how I’ll start. | |
| Totally open to looking at fund administrators but I believe I’ll need the track record for them to bat an eye. | |
| It depends on what you’re trying to do. There are a bunch of registrations, licenses etc depending on what products you want to trade and what type of business you’re running. | |
| I’m not a lawyer or your financial advisor so I’m not giving out financial or advice in any shape or form. | |
| What are you trying to do? | |
| Nice ! | |
| Alchemy of Finance by Soros. | |
| Dynamic hedging Nicloas Taleb. | |
| These are the two I can think of atm. | |
| But I have to say specifically for these strategies you mentioned make sure your Book author was/is an established Manager not just a Random financial author !!! | |
| Trade your own $$$ for at least 2 years, then hire a cheap admin to confirm performance. If it’s good enough, maybe consider a fund. | |
| I’d like to start a fund, primarily Stocks. But perhaps use other tools to support the underlying positions, basically Hedging. However, I would like to hedge lightly since I would like the fund to own the businesses longer term to truly benefit from true gains. | |
| I’ve been thinking about allocating the funds resources in a way where we benefit from what’s coming up in the future. For example; I think that Airbnb is an excellent disruptive business that will probably be around for a very long time. I just don’t think that the valuation is there but if it does indeed get to a nice price I’d like to own it in the fund for several years as the business matures and creates value. | |
| All in all, I would point the fund in the direction of the businesses that will be crucial for the future and as time goes on we can pivot and adjust to better derive opportunities. Sort of move the ship and adjust it to benefit from what’s ahead. | |
| I’d also have allocations in places where by owning that one stock you own several other important businesses. For example; Blackstone. Indirectly the fund would own a large alternative assets business while receiving income from the dividends and we get exposure to private equity deals, real estate deals and so on. | |
| The dividends will probably be re-invested since the fund is skewed towards long term investments rather than short term gains. | |
| I’d also focus on transparency. I would like to keep the fund investors up to date with our reasoning for buying a company and a thesis on how we’ll make money. And lastly I would ask our investors to feel free to share any ideas they might have that could be profitable since perhaps they know of an opportunity we might be missing. | |
| **Not investment Advice by the way, this is just my opinion and some ideas that I’ve had recently. | |
| So based on what you said it seems like you want to raise capital and deploy it just as you said, which looks like value investing… | |
| So you have to understand the way hedge funds work from a structure point of view, which is you create the general partner/limited partner and then you have the limited partner agreement as well as a private placement memorandum. Everything is outlined in these documents on what youre going to do, how youre going to do it, watermark structures etc. | |
| When you do it like this you need to understand the registrations with the SEC and the limitations on how you can raise capital, working with accredited investors etc and the fact that you will need a prime broker to execute the trades on your behalf. Which is different than you being the broker yourself and executing the trades yourself. | |
| Now in the hedge fund structure if youre going to hedge using futures or derivatives you have to understand the regulations and jurisdictions are different. Again the prime broker would be doing all of this for you which is different if you wanted to have discretion over the accounts yourself. | |
| Hedge funds are pooled assets where clients are | |
| actually buying shares of the company, which is different from segregated accounts in a CTA where you actually trade other peoples accounts. | |
| There is lots of overlapping in these structures and licenses which is why it can be extremely confusing until you really grasp how it works. | |
| Ahh thanks for the insights! I still have some time before i carry out this project. I’m planning on doing in in about 5 years. I currently have my SIE and I’m working on getting my Series 65 soon. That’s where I’m starting out. | |
| It’s also worth a mention that I would prefer to simply do research, focus on making well rounded investment decisions and execute on the teams outlook. I’d like to be able to hedge because it’s another tool in the toolbox but it wouldn’t be something I’m actively looking to do to squeeze out every penny. That’s why I’d state it very clear to the investors that the securities purchased within the entity will be businesses that we want to own for long periods of time. We might trim and cut our losses if we are indeed wrong as we adjust to the landscape we want to participate in. | |
| So instead of a fund, perhaps I can go the “investment company” route where we raise capital and we make investment decisions and manage the company as a holdings company. But then that’s another set of things that I’d have to learn how to manage, what happens when investors want to sell their positions… etc. do they become owners of the business, is the business an LLC, LLP, GP… Trust… | |
| No worries, its a lot to learn for sure. | |
| I have my series 3 and series 30, going to get the SIE and series 7 later this year and eventually the series 66. | |
| It all comes down to what you want to do, what assets and products you will trade, if you want to create your own product and then of course how much control you want over the execution process." | |
| The first website to track hedge fund performance! - HedgeFundTracker.com,14,https://www.reddit.com/r/hedgefund/comments/j8tryc/the_first_website_to_track_hedge_fund_performance/,"I was JUST talking about how this would be useful to have! | |
| Nice. If you want the data then HSBC produce a report every month. You just need to find someone who is willing to forward it on. | |
| Data broken down by fund would be more meaningful. Like, what does the number for AQR even refer to? They hardly have a flagship fund. | |
| I believe [Whale Wisdom](https://whalewisdom.com) does just this. | |
| This is great and I would love to join you and your friend if that is possible. I can help gather data and assist in any way possible. Thanks | |
| What sources do you use? | |
| Thanks for the feedback. We are familiar with the HSBC data but that surprisingly it is missing a lot of top funds. Definitely a long list and we hope to make expand ours. | |
| To your point about about fund specifics, we plan to incorporate fund specific performance but now are trying to focus on flagship. You are right flagship is blurry for some hedge funds so we will work on more transparency there. Thanks again for the feedback. | |
| Whale wisdom actually doesn't. They use 13F filings to construct performance but it's very very far from actual performance. | |
| What source are you using? If not 13f, I can only imagine self-reported. How is that audited?" | |
| Markets: London Hedge Fund Closes After Sour GameStop Bet,13,https://www.thetechee.com/2021/06/markets-london-hedge-fund-closes-after.html, | |
| Best path to become a successful hedge fund manager,12,https://www.reddit.com/r/hedgefund/comments/hf4vnz/best_path_to_become_a_successful_hedge_fund/,"[deleted] | |
| I am a teenager and want to become a fund manager as well. I can’t really give you any great advise since I’m in the same kind of situation as you, but I have been learning a lot through reading books and subscribing to and reading stock market news letters. I’ve learned enough to where I manage my money and small amounts of some relatives money. I am continuing to learn and hope to become a better investor and hopefully manage my own fund one day like you. | |
| I come from both auditing and now working for a hedge fund (2 years auditing 20, 5 years working at a fund). | |
| The most common fund manager is someone who previously worked at a bank. Investment bankers who were very successful, likely a minimum 12-15 years of primarily winning. I’ve seen guys who owned pieces of the bank sell their shares and use that capital to start a fund. I’ve also seen ibanking traders who were head of sales become portfolio managers due to the large number of connections they have. | |
| Outside of the majority, remaining fund managers are incredibly smart doctors / scientists that others have mentioned. | |
| My friend started a small one with friends and family trading options on indexes. He developed a great strategy on one index and has made fantastic returns for over 2 years. | |
| I'm right behind him and will be starting my fund soon through his mentorship. | |
| I recommend using options and seeking mentors. With good experience, you should be able to average 3-5%+/month (after his fees). Do that consistently and people will be begging you to take their money. | |
| there are normally 2 ways to go about it | |
| 1. study reallllll hard and get into top schools, internships, and case competitions | |
| 2. create your own strategy, invest your own money, don't forgot to track all your records. Share your journey with others, over time if your returns are good and you make the right connections, you might get the chance to run your own fund! Its only through experience and time. | |
| Good luck! | |
| Thanks a lot! | |
| Why do you believe non quant funds are destined to fail? All a an algorithm can do is buy at a lower price and sell at one that’s higher. No algorithm can do research and make rational decisions. | |
| Glad to hear that there are other people like me. I would like to know more about the kind of books you read. I hope I meet you in the future. Good luck. | |
| Now, i understand that the sub reddit is not for promotion but for sharing. but this webinair may interest those that are interested in starting their own fund. | |
| [https://istox.com/events/an-intelligent-investors-strategy-in-a-post-covid-19-world/](https://istox.com/events/an-intelligent-investors-strategy-in-a-post-covid-19-world/) | |
| The speaker started from engineering > The Motley fool writing newsletter > now at young 30 is managing his own fund. | |
| although its about investing, the 1st part will be about this journey, would be insightful for aspiring managers to watch and ask questions | |
| Thanks you sir! | |
| Thank you for your time | |
| I have already read The richest man in Babylon. It’s not about investing in particular, but it is a great personal finance book that I got a lot of info out of. I also enjoy reading Micheal Lewis books. They are not so much focused on a certain investment practice either, but they gave me a larger understanding about some of the best traders and investors. I have also read the Little Book of Common sense investing. The book mostly focuses on ETFs which are great for lesser experienced investors with smaller portfolios, like myself. I am currently reading The Clever Investor and Principles which I recently started. In the future, I hope on learning more about options trading because my grandfather often traded options and taught me a lot of what I know also. He was a financial advisor. I know they are probably less of what I should be investing in now, but they have always intrigued me. Sorry that I got a bit sidetracked, but I hope you get the chance to read some of these. Good Luck. | |
| If you are able to use your own families money like this, and are making profit just start your own hedge fund. Why do you want to work for someone? | |
| I don’t. I would prefer to start my own fund. | |
| well im a teen also and aspire to be the same thing. Im having a bit of trouble in the retail markets though. I switched from day trading and at risk of losing 20% per trade to swing trading with my moms money and only losing 0.5%, but i also have very low returns(like 0.5% to 3% gains when i win because of all the things i do to risk manage). Do you have any advice? | |
| I don’t know enough about swing trading and day trading. I’m more informed on long term safer investments. I would love to and plan on getting into day trading and options trading though. I just need to make some more money first and fully educate myself before I do that. | |
| Day trading is so crazy and not worth it IMO. There are computers and all they do is buy and sell at a higher price and you cannot beat a computer(I’m not saying it’s not possible, but few make the journey). Day trading Options is very fun though. I think you should swing trade though it’s much more fun with lower risk. I stopped day trading for a reason man and I think you should take note." | |
| The Story of James Simons,11,https://www.reddit.com/r/hedgefund/comments/esuxwc/the_story_of_james_simons/,https://twitter.com/Kristian_FPM/status/1254118875710607363?s=19 | |
| Moves: GameStop COO Out After 7 Months On The Job,12,https://www.thetechee.com/2021/10/moves-gamestop-coo-out-after-7-months.html,"Fuck you Kenny | |
| Damn straight" | |
| Trying to make a career transition into Finance at 30 years old. Feasible? Possible?,11,https://www.reddit.com/r/hedgefund/comments/o994a5/trying_to_make_a_career_transition_into_finance/,"There's different types of firms in finance. There are investment advisor type firms where it's all about building a book of clients or joining a growing team, there are hedge funds and asset managers that either really value CFA, MBA or STEM master's degree (as it depends on the firm), and there are even high frequency trading firms. There is also prop trading where your salary is entirely dependent on your profitability, and if you're not you are kicked out. | |
| Each of those types of firms will have different criteria for recruitment. To be honest, unless you're getting an MBA, CFA, or STEM master's degree I'm not sure you'll be able to join the hedge fund, asset management or high frequency world unless you join from a different role (like a marketing, operations or compliance type role and I'm not sure how much you'll like them). | |
| With that said, investment advising might be your quickest (not saying easy, just quick) to getting into the industry. This does require getting licenses and finding a firm willing to give you a shot. | |
| Any questions, please feel free to ask but I hope this clarifies some types of firms that are out there. | |
| I launched a hedge fund at 32. Register with Finra as a ERA. You don’t need any industry designations if you work at your own firm, Warren Buffett has none. You will need some skill tho or else people won’t want that. The market is looking for excellent risk-adjusted returns. Find a way to Give it to them and you will be successful. Make sure the management co is a corporation not LLC. | |
| Believe in yourself and be glad and ok with working endlessly if this is what you want. | |
| The best way to get into finance is to start a business otherwise you'll be cold calling all day until you build a book. It's not more glamorous than car sales | |
| I wouldn’t put too much weight on your age. It really doesn’t matter how old you are when you start (to a certain extent), it’s how fast you run to get to where you want to go. | |
| I’d say you have to decide what part of finance you want to work in. To work in a HF type arena, you’re probably looking at going back to school—and not just any school. You’re probably also looking at getting your CFA, CAIA, FRM, or some combo of those things. But ask yourself, why do you want to work in a HF? Money? There’s other ways for that. | |
| You could work on a sales team at an Asset Manager—BlackRock and Invesco both have offices in ATL. Those guys make six figures starting out. | |
| You could also go the advisor route. It’s a hard road with a very big fail rate. You better get good at networking and building your book. If you’re not, maybe join a team that already has the infrastructure and learn from them. | |
| There’s so many options out there. You have to determine why you want to get into finance, and then determine what you’d enjoy. Do you want to be more of an analyst type, or are you more of a client facing type? Either way—don’t worry about your age, just pick a path and go for it. | |
| I'm quite younger than you but advice & perspective doesn't coincide with my age. The only thing, corporate finances hire young people is coz they are excited & have stamina to work hard. Believe me, you give a college graduate $80k a year just out of college, not all of them, but.majority will consider. You can break in 30s as well. It might be difficult due to stereotype of young guys working harder but it is possible. Assuming you in 30s, you must be having good network, reach out to them and you can obviously stand out to other analyst applicants due to your experience in all your 20s in whatever field you were till now. | |
| Everything in finance depends on what you want to do. | |
| As a trader you can scale a winning trading strategy relatively easily as long as you understand the laws and licensing regarding securities… | |
| This was very useful. Appreciate it. | |
| Can you throw out 5 firms you think might offer entry level investment advising roles? I’ll pull up their career pages and start applying asap | |
| This was really helpful. Looking into this today in the afternoon for sure. | |
| I always think of the movie Pursuit of happyness where Chris Gardner made it by working harder than all the younger, fresh out of college grads. Thanks for advice. | |
| Can you share your state or general location in the US (ie: northeast, Midwest, west coast, etc) | |
| Ok, I’m close to the city of Atlanta. I live in a suburb. I drive by a few Charles Schwabs. I heard there is a GoldmanS not too far. There are some more. I would literally put on a suit and start tomorrow if I grabbed even an internship. | |
| Will send a few shops in that area for you to look at! | |
| Here is a top 10 list for you to start with | |
| https://smartasset.com/financial-advisor/atlanta-ga-top-financial-advisors | |
| You are the man u/antonio_zeus | |
| Now that I have this, what do you recomend I narrow my search results as far as positions I might be able to apply to? | |
| u/antonio_zeus wow Raymond James and Goldman Sachs weren't even on the list | |
| DM me your LinkedIn profile and I can try to use that as a way to point you in the right direction" | |
| "question about difference between retail ""dumb money"" and institutions ""smart money""",11,https://www.reddit.com/r/hedgefund/comments/nmr1ek/question_about_difference_between_retail_dumb/,"Check out the [DALBAR studies](https://www.ifa.com/articles/dalbar_2016_qaib_investors_still_their_worst_enemy/). Retail investors are their own worst enemy. They buy at the worst times, and sell at the worst times. | |
| Institutions on the other hand are much better at surviving volatile periods because they have such a high level of conviction in their positions. Institutions do their homework, manage their risk, position size, and know their entry and exit points. | |
| Retail investors on the other hand just YOLO everything based on news headlines. | |
| Honestly, it’s a gamble to “smart money” as well. Every year hundreds of funds just simply go bust and fail. Some succeed. Don’t fall victim to selection bias, look up the funds that file 13-F’s and you’ll find a handful that outperformed last year, and then a truckload that went negative or underperformed. | |
| My conspiratorial opinion is that the institutions that consistently win and stay open don’t bet on outcomes, but in fact they manufacture the outcomes (Think of firms with 2b+ AUM, just seemingly hitting the ball exactly right every time). | |
| More or less correct. The amount of leveraging done is quiet impeccable. The ability to mitigate all losses to a T is almost scary. Only in horrific black swan situations do any hedge funds or institutional investors actually ""lose"". Unfortunately the goal is to beat the bench mark which creates riskier investments. Just a simple option hedge or FX FWD hedge at the right time can mitigate losses on a small bond. In addition to, institional investors obtain resources usually a bit faster or understand it better before trail. Much of the market is based on how information is interpreted and how investors use it in time | |
| Imho when big money trades they make larger gains because of just that, big money. Price fluctuations happen all the time. That’s the secret, price fluctuation. If you buy a security with a half way decent research, eventually it goes to the positive, in whatever way you play long or short. If you have enough money to play with you can use these price fluctuations to catch “small” profits all day. But to them it may seem small but to some retail investors it’s huge. If they make only say $10-20k per trade but do it all day...well lots of money. | |
| If you just bought the index and held you’d do better than most “smart” money if you discount their ability to leverage. It is the buying and selling ie you, that’s working against you. Institutional think long term and don’t panic sell. In honestly tho, even few institutionals beat the market consistently. | |
| I’ve often thought that a lot of this just comes down to time. If retail didn’t have day jobs, more of them would be able to match the returns. | |
| How do they manufacture these outcomes? The show Billions taught me that this is done mostly if not entirely through illegal means. | |
| I'm aware that not all hedgefunds succeed but the fallacy of hedgefunds being unable to beat the market over time is true but misguided. Hedgefunds and institutions have a tough time because they are the market, they are the biggest buyers and can not beat themselves. | |
| Also smaller firms qnd individuals don't have size weighing them down and can beat the market but dumb money ruins it for themselves while.the smart money does a decent job till they get to big and returns slow down, that's why the best hedgfunds are massive and provide amazing returns like Bridgewater | |
| not really true. The interpretation of the material is most important. Retail investors can do only so much research and can identify as well as a hedge fund manager with a DCF or a robotic algorithm, but it is understanding the market and risks. Do not forget, institutional investors can trade up to a certain amount times their own investment in the form of margin. Where most margin accounts are fairly limited in amount. There are also many different types of trading and risks, most Funds with large amounts do not have to risk alot to make alot. They may lose many times on small amounts then hit big on the really large amounts. Risk mitigation is key | |
| You already know the answer. They confirmed naked shorting on the news. | |
| I’d argue that a lot of hedge funds are massive bc it’s easier to attract more money/investors when you are a certain size. For a while the pie got smaller and they all ran to the big players even if they underperformed expectations. As an allocator there’s less risk for them when allocating with big names even if they underperform. I do agree it’s harder to make returns with size. You are often forced to allocate to strategies that aren’t your forte and find new products to sell and diversify your portfolio. | |
| Thanks to Melissa Lee." | |
| $GME GO BRRR,12,https://imgur.com/gallery/0taIZI7, | |
| Former Goldman Sachs distressed debt investor posts his $3+ milion pay stub on the Internet,11,https://www.reddit.com/r/hedgefund/comments/j01hqp/former_goldman_sachs_distressed_debt_investor/,"Looks like his base pay is around $200k which isn’t even incredibly high for the industry. However his bonus is unfreakin real. Of course at a hedge fund it’s not a shock that a majority of your salary comes from a bonus | |
| 2mil cash 1 mil stock | |
| Jealousy all abound | |
| https://www.afr.com/rear-window/alex-turnbull-s-hedge-fund-now-a-family-office-20201005-p5626l | |
| Base salary / bonus split is standard. What’s not standard is posting your pay stub on the public Internet. | |
| Also telling he had to dig all the way back and post 2012. It says a lot about his comp in subsequent years. | |
| Stock didn’t vest so it’s actually $2m | |
| Don’t know why he’s so obviously proud of it | |
| People making significantly more at younger age don’t post their pay stubs on the public internet" | |
| Work Conditions in Citadel in NYC,9,https://www.reddit.com/r/hedgefund/comments/10ke0ka/work_conditions_in_citadel_in_nyc/,"I mean, finance is not rainbows and bean bags and slides, if that’s what you were hoping for. | |
| I thought so...if the TC is 500k/a or more...maybe worthwhile to bite the bullet and stay 2-3 years. | |
| Golden handcuffs | |
| What position are you looking for at Citadel? Then I might be able to give you advice. Also what's your background (prev work, studies)? | |
| It's an analyst position in a niche field...I don't want to say it out loud in case they are looking LOL...I have my 1st interview coming up in a few days. | |
| u/ThinkBigger01 Thanks for the offer...actually it doesn't matter now. I didn't make it beyond the final interview. Worth a try though. | |
| I went to a feeder school in California, have a undergrad in CS + Econ and am currently a systems engineer building cloud product security features at a high growth tech startup that recently IPOd. For the longest time I have had an allure for working in the hedge funds / trading / quant trading space and am curious if it is fulfilling? I am uninspired or not as inspired as I have been in the past at this job and don’t believe I will enjoy a career down the SWE route. At 23 I feel like this is the time to make a switch and chase a dream that would make me happy if it is worth doing so. How are the hours ? The work culture ? Does it get your heart racing ? Is it exciting? SWE certainly isn’t." | |
| CREATING MY OWN FUND - LOOKING FOR PARTNERS,9,https://www.reddit.com/r/hedgefund/comments/ulz70v/creating_my_own_fund_looking_for_partners/,"Seriously, a good idea. Not enuf details tho. | |
| You may want to start with an incubator fund, Helps rest the market and avoids large legal costs | |
| Interesting idea | |
| What kind of returns are you targeting with what volatility? | |
| why do you want to start a PE/VC/HF? | |
| I'm looking for a hedge fund team - Fund Operator and Fundraiser. I've went from 4000NZD to 10000NZD in 18 months using a dividend reinvestment strategy as well as positioning in capital gain assets with retail interest like Gamestop, Twitter and ExxonMobil. Wanting to expand this strategy to include writing Put options to maximize cashflow and capital gains. | |
| Anyone up for making some money through a hedge fund incubator? | |
| Send you a DM. | |
| This may be what I am looking for, we have a Hedge Fund that has been private for over 10 years and has been averaging over 14% with very little risk. | |
| How do we find out more information? | |
| [www.evaulm.com](https://www.evaulm.com) | |
| The way that I'm seeing this is: | |
| people that are working for some Hedge Fund or Private Equity for a couple of years (or whatever) - having access to customers and already very skilled - and want more than just a salary and 80 working hours per week, but don't have the $$ for first investment & don't want to lose their income while working on getting on their own. THIS IS THEIR OPPORTUNITY: I WILL COVER ALL THOSE COSTS - JUST TO BE A PARTNER WITH SOMEONE WHO IS READY FOR MORE! | |
| FRESH GRADUATES THAT HAVING SOME GOOD IDEAS OR ACCESS TO SOME GOOD BUSINESS, MOTIVATED TO START ASAP ARE WELCOME TO! | |
| I borrowed $ from a hedge fund & thus have a couple contacts. One guy said to me ‘we have so much $ that we don’t know what to do with it’. I agree w u & always felt that things like this r a good idea. I just mentioned something similar to my nephew who’s an attorney. But, between his surgeon wife & him they make like a million a year. So, he said the amount of workks not worth it. | |
| Looks like you are in the field for long time. | |
| You have to join us. :) | |
| I have some good experience, but no real $ to invest after this market slammed me. I’m lucky that a CRE is holding its own. I sorta know about banking, funding, RE, etc. but on a smaller scale. I just really agree with your premise. In a way it’s like taking over a seemingly good co. not being run very well, & has a poor stock price, some changes would help the biz… but top mgt. is fat & cozy. Keep me abreast tho. (Also, Long story short… I got to invest $100k thru a hedge fund I kno, for 2 yrs. Got 5 points upfront, monthly interest payments @15% & a final 33% roi. Collateral was CRE.)" | |
| Hedge funds ready to leave New York and move to Florida,11,https://www.fr24news.com/a/2021/04/hedge-funds-ready-to-leave-new-york-and-move-to-florida.html,Shitadel already set up an office down there that they keep workers in 24/7 | |
| Starting a small hedge fund,11,https://www.reddit.com/r/hedgefund/comments/mxaets/starting_a_small_hedge_fund/,"Define ""small"" | |
| Good luck! | |
| Micro or nano may be a better description. Thanks for asking, I should have stated that. Just $1.25-1.5 million, maybe more, but less than $2 million. | |
| Ya either raise more money for a $50M launch, in which case maybe one of the primes hunting for share like UBS will take you, or start with IBKR and go from there | |
| IBKR as a stepping stone then..." | |
| Bridgewater Junior Trader Interview,10,https://www.reddit.com/r/hedgefund/comments/ln4vgb/bridgewater_junior_trader_interview/,Read Dalios principles | |
| Top stock picks by top 833 hedge funds in Q3,10,https://i.redd.it/45yb8lu4g7041.png, | |
| Billionaire George Soros Amasses Sizable Stake In EV Maker Rivian,9,https://thetechee.com/billionaire-george-soros-amasses-sizable-stake-in-ev-maker-rivian/,That's only because he can power them with his sith lord lightning strikes. | |
| To stay or to split off?,9,https://www.reddit.com/r/hedgefund/comments/run9w7/to_stay_or_to_split_off/,">The promise of working for this firm is that our owner is aggressively trying to raise more capital. More capital means more AUM, more fees, and hopefully a nice bonus down the road. | |
| Sounds like your upside is based on hope, and contingent on how the owner happens to feel about you at the time of your bonus. | |
| Do you take a percentage of the return from your $5mm allocation? If not, then I'd split off, but give the owner the opportunity to provide seed capital (best to not burn bridges). There are also a lot of trading firms that will provide you additional leverage, as long as you provide the first loss piece of the capital (though some of them have pretty strict drawdown policies). | |
| Alternatively, you can ask for carry, at least on the returns from your $5mm allocation. However, given this tidbit: | |
| >And even though I made money this year and the firm made money the fees we collected were barely enough to cover expenses. | |
| It seems like even if you got a bigger piece of the pie, there isn't enough pie to go around. | |
| Appreciate the response. | |
| Yes, my upside is based on hope that we are able to raise more capital and that I am then able to perform with my allocation of that capital. There is definitely not enough pie right now. No, I don’t have a formal agreement to take a fixed percentage of my returns. | |
| I guess my question is, should I be asking for a piece of the actual business? Or is that outside of normal practices for these situations? I feel like I’ve put too much focus on markets/trading over the years and not enough on my career trajectory. Just at a point where I’m not sure that the risk/reward is that favorable. | |
| Would 100% run unless you are on a very high salary. Without a formal agreement you can double your allocated funds and still not get paid. | |
| >I guess my question is, should I be asking for a piece of the actual business? | |
| If your work directly contributes to revenue generation, then that puts you on the business side/front office. | |
| The way the industry is today, front office comp usually includes some sort of carry. | |
| The alternative is to start applying for other jobs on the down low, and get more market color (on what other quants in your seat) that way. | |
| >Or is that outside of normal practices for these situations? | |
| Renegotiating comp doesn't seem like it'd be outside the norm, especially with 8+ years of experience, and a few months to prove yourself. | |
| >I feel like I’ve put too much focus on markets/trading over the years and not enough on my career trajectory. Just at a point where I’m not sure that the risk/reward is that favorable. | |
| If you are confident in your trading (whether its algo-driven or otherwise), but are concerned about the overhead, then you can always just set up a simple LLC and apply for trading firms to provide you with leverage. You will be your only employee. The risk is that your trading skills aren't as good as you hoped, and you end up making less money. | |
| Alternatively, you can be a quant trader for just about any other fund or bank, and make more than decent pay while beefing up your credentials." | |
| Hedge Funds in India,10,https://www.reddit.com/r/hedgefund/comments/qu8ds2/hedge_funds_in_india/,"USD 350mm Private Equity firm? | |
| Most hedge funds covering India are out of SG or HK | |
| Hi, just curious, how did you break into the field? do you own the fund? | |
| I personally don't know anyone operating from india, but from various nearby cities. | |
| If you have a good 5 year track record, business will come. And when I say good I mean no large drawn down and steady ror." | |
| Applying as an engineer,9,https://www.reddit.com/r/hedgefund/comments/q668i5/applying_as_an_engineer/,"you better have something to show you are interested in investment portfolio management, not just a coding monkey. monkeys are cheap. they are not just hiring from Ivey league, its just that these people are active on both presentation and technical skill. Try ask for a coffee meet with someone in the firm, and see if u can identify any common things among you two. If not, then u have the answer. | |
| Apply and you will find out. Bridgewater is an interesting company and you will need to read the principles if they like you but it never hurts trying to apply or reaching out | |
| Not a coding monkey, I’ve been working for 8 years and have had over 7 clients from the East to the West, and I took a lot of effort to highlight that on my cover letter. Would someone look at a cover letter during Covid? | |
| I’ve applied, reached out to the recruiters on LinkedIn and also tried to reach out to a few engineers. No luck yet. | |
| Gotcha it might take time but that might be your answer for now. If you are interested find other company's that might want someone with your backround." | |
| Content Pieces just like Billions,8,https://www.reddit.com/r/hedgefund/comments/q35gci/content_pieces_just_like_billions/,"You can watch The Wizard of Lies, Betting on Zero, China Hustle, Freakonomics, The Ascent of Money, Dirty Money. Margin Call, Too Big to Fail are some more about 2008 | |
| I think you will need to be logged in with an account on IMDB to view this but here's a list of 64 finance related movies and documentaries | |
| https://www.imdb.com/user/ur126217419/watchlist | |
| Ive seen all these too. I too am looking for sth new in finance | |
| There are many on startups and entrepreneurship tho if youre looking for that too. | |
| I’m going to suggest Trading Places. It’s, imo, Eddie Murphy’s best movie and it’s got a fantastic ‘shorting the market’ aspect to it. And so many quotable lines. It’s hilarious. | |
| China Hustle is a must see... amazing that its still relevant today.. | |
| > China Hustle,The Ascent of Money | |
| New names, thanks a lot bud | |
| > startups and entrepreneurship | |
| Go for it; your top recommendations | |
| Link me the indeed haha" | |
| "The book ""The Mars Hypothesis"" provides the Federal Reserve with a new fiscal calendar, a fixed interest rate setting plan, and bear market predictions all the way thru the year 2098...all based on the movements of the planet Mars",8,https://books.google.com/books?id=Ke91zgEACAAJ&newbks=1&newbks_redir=0&hl=en,"So what does it say ? | |
| And? | |
| And the author made a reddit post about today | |
| [Free copy of the book](https://c.tenor.com/bxHQ4KcM8eMAAAAC/magic-meme.gif)" | |
| Hedge Fund - Learning recommendations,9,https://www.reddit.com/r/hedgefund/comments/pno3s5/hedge_fund_learning_recommendations/,"Check out the cfa investment foundations program. It’s basically made for people in your situation | |
| I personally read articles or reddit forums, anytime I don’t know a phrase, word or acronym I look up an article explaining it. If i don’t know a word in that article I read that. Rinse and repeat. Using the words helps too. | |
| What kind of business line ? Fixed Income ? Equity ? Exo? | |
| They trade in about 45+ different security types - various bond types plus equity and real estate vehicles." | |
| Working on a startup to make hedge funds easy/low cost to create for 'regular' investors; would love feedback,7,https://www.reddit.com/r/hedgefund/comments/oecw5v/working_on_a_startup_to_make_hedge_funds_easylow/,"One of the key reasons retailers don’t have ready access to hedge funds is because of the due diligence required. It takes a specific level of expertise to even understand the highly-specialised, often opaque methods hedge funds use to trade their strategies, and the expertise often required to do this _well_ (anyone can trade a strategy, but making suitable risk-adjusted returns on it is difficult). Increasing access is good, but the education that needs to go along with access is super important. This is to ensure retail investors have the skills necessary to properly diligence their investments and effectively not get ripped off by bad actors. One of my biggest bugbears with “sophisticated investment instruments”, which basically means they require some research to fully understand, is that retail investors can get through with a four-question self-certification. You don’t let individuals get into a car without driving lessons, and seatbelts are there to protect them. | |
| Check out a startup called Vauban, they were doing this exact thing but stuck to the VC market and moved away from hedgefund. | |
| Have you worked in a hedge fund? Have you raised yourself? How do you relate to the problem? | |
| Nobody is going to reply unless you have experience with this problem and know exactly how to solve it. | |
| A lot of legal and regulatory hassles can be avoided by only accepting accredited investors into a fund which makes it not retail friendly. | |
| I think this a great idea. What’s going on with this? Any updates? | |
| Definitely - this is a reasonable and absolutely true take. | |
| That said, hedge fund is almost a misnomer here - it's just the legal/regulatory vehicle required to accept and trade on behalf of investors. | |
| We think there are many retail investors who can scale their strategies to micro-fund size of a few million, and most of those investors aren't quants or engaging in the generally sophisticated strategies you'd find at a hedge fund. Could someone who has successfully been investing a few hundered thousand for 5 years run a $200M book? No - almost certainly not. But can they scale that same strategy to a few M? That's a lot more plausible. | |
| Yea - we saw that. I'm trying to connect to their founding team to learn more about why they shifted tack. Thanks man! | |
| We have strong backgrounds in fintech engineering and regtech. We think that most, if not all elements of hedge fund creation and management can be automated (sans auditing, which needs to remain third party) for all the but the most sophisticated funds (institutional), which is a fairly different problem set and experience set than 'working at a hedge fund' - which generally gives you no visibility into all the backoffice things happening that allow you to focus on your book. | |
| Edit: You edited this by the time i responded - the direct answer is 1) disagree that you need direct experience running your own hedge fund to start solving it, as when you have your own fund/work at one you don't get any exposure to most of what is happening on the admin/backoffice/accounting side. | |
| Nonetheless, despite that disagreement, we use blue-chip HF service providers in the background to supplement our tech and we have advisors behind us who have run institutional level hedge funds with collectively several $B in AUM. | |
| Lastly, our legal counsel is the same counsel for not only several fintech unicorns but also the outside fund counsel for multiple multi billion dollar hedge funds in NYC. | |
| Hey u/mufasis \- sorry, we (or rather, I) don't check Reddit often on this account, as we've been focused on building the business! | |
| We're live and have a number of hedge funds fully launched, ranging from talented retail investor led to traditional emerging managers who were planning to launch hedge funds through traditional avenues but preferred the cost structure, convenience, and experience of Repool. | |
| Would be happy to chat if you'd like; you can contact us at [[email protected]](mailto:[email protected]) or feel free to DM or chat me! | |
| Perhaps. However, judging the investor’s track record, investment strategy, etc etc is just as important for a microfund as for a $200m fund. While the range of strategies at smaller scale may be less, such an investor could still make use of derivatives for example and run a complex book. And as the retailer is putting cash in the investor’s pocket, they still need to know what to look for, which isn’t easy. | |
| A side thought though if you do have success: I’d be really interested in your software offering a benchmarking tool which would help to place investors into a quartile based on their trailing performance, plus risk metrics. While strategies are often unique and return targets absolute, I still believe you could create broad buckets divided by general strategy (e.g. long-only, L/S equity) and factors like geography/sector. Something like how Predix and Cambridge Associates do for Private assets. That might help retail investors a great deal. | |
| They shifted because they were spread too thin between HF and VC so they want to focus on excelling in one area. That is what I was told anyway. | |
| Definitely think it is a good idea and helps democratise the industry a bit. | |
| good luck mate | |
| I’m still confused by what you are offering. Are you saying you want to run like a Millennium style multi PM company and basically provide all the back office via technology? Then you onboard essentially retail PMs onto your platform instead of institutional PMs? Who is the investor? Are they retail as well? Who’s doing the PM risk analysis and diligence etc? | |
| Certainly - and i think there's a strong correlation between actually successful, long-term retail investors and sophistication. | |
| Our plan isn't to merely allow anyone to create a fund; they'll need to expose information about their trading history and track record. We want to provide a meaningfully value-add alternative asset class, not merely another way for investors to lose money. | |
| Super interesting feedback in the second side! What's your background, personally? Happy to move to DM if you prefer as well. | |
| Thank you! Cheers." | |
| How to get into a hedge fund?,9,https://www.reddit.com/r/hedgefund/comments/o81ilu/how_to_get_into_a_hedge_fund/,"As a sophomore, you should be looking at summer internships. Firms typically do these one year out. I'd apply to as many as you can and see how the interviews go. This at least will get you some real world experience with what you'll need to get in. If you fail, then you'll know what to work on, and if you pass then you'll get to put relevant work on your resume. The more hedge fund internships you do, there more likely you are to get a job out of undergrad. | |
| As for education, a graduate degree is almost the minimum to get in. I personally believe that STEM degrees are an easier way to get in, given so many do quant BUT this will always depend on the firm or team and what they are looking for. | |
| Also, I've given this advice before but look at all the firms you'd love to work out and look at the LinkedIn profiles of the people working there in the roles you want. After 100 profiles you will find a pattern I can guarantee it | |
| 1. Get yourself to an Ivy League or name brand school | |
| 2. If not this, look to get yourself an MBA at one of the noted above | |
| 3. If not that, showcase your genuine investing skills, thesis for investing and models to show your technical skills | |
| 4. Get connected on LinkedIn to someone - don’t ask for free advice, try to connect and offer something of value in return (introduction to someone, | |
| 5. Show a good track record of high returns and successes where you achieved alpha | |
| 6. Read read read the shit out of financials, investing books and follow dynamic leaders in the space like Ray Dalio or Jim Simmons… there is a tremendous amount of free material that is highly useful | |
| 7. Being a hedge fund means more than just modeling in excel and being a finance whiz, you need to understand the fundamentals of a business model and really be able to dig in deep | |
| 6. Chances are you will more likely need a couple of years working investment banking to break in, but it’s not for every case | |
| Classes you should start with breaking into Wall Street or similar platforms for training bankers. | |
| While choosing the right degree program is a good first step, where you go to school may be as important. A 2018 eFinancialCareers survey found that the bulk of hedge fund employees attended top schools such as the University of Pennsylvania, New York University, and Columbia University. | |
| Write up a solid stock pitch. Look on LinkedIn for people working at smaller shops. Reach out to those people with your pitch. Expect to work for free over the summer. If your pitch is good and you will work for free, if you network enough eventually you’ll find a summer internship. After your internship put that on your resume and do it all again the next year, but now more doors will open because you have experience. Don’t give up. | |
| Edit: you can also intern part time during the school year. Doesn’t have to be a summer internship. | |
| Do you have an example of a solid stock pitch? | |
| Check out the value investors club website. You don’t have to be a member to get basic access. There are hundreds of pitches on there and most of them are solid." | |
| Not the squeeze,10,/r/amcstock/comments/nbodcc/they_are_calling_this_the_squeeze_this_is_not_the/, | |
| Hedge fund admin versus administration software.,9,https://www.reddit.com/r/hedgefund/comments/mkm00h/hedge_fund_admin_versus_administration_software/,"There are admins that specialize in start ups and run in the 500-750 a month range. NAV Consulting comes to mind. I have a contact there if you want to pm me for his details | |
| You need an administrator, you do not need to run shadow books and records. Do you need an internal platform so you have easy access to PnL intraday for trading? Does the admin offer that? | |
| You will not be able to raise capital without an independent administrator. Bernie Madoff changed that. | |
| Other considerations are how you will manage transfer agency, allocations, vendor upgrades for new accounting pronouncements, reconciliations, regulatory reporting, etc. | |
| You should use a 3rd party admin and custodian. Don't get into this game on your own | |
| https://www.reddit.com/r/hedgefund/comments/mlxsz5/hedge_funds_declaration_of_war_to_wallstreetbets/ | |
| Sure, if you don't mind! | |
| Thank you! | |
| Thanks, this is what I thought! | |
| I do not need an internal platform, because I am not trading frequently enough (I can do this in excel very easily). | |
| You can also get the data through your admin. They should be able to provide you with daily PNL or have a system with daily reporting capabilities. | |
| Thanks, I could see us doing this. I am just going to have to talk some sense into my friend to stop trying to ditch our admin firm =Z | |
| Saw this today and thought of you! | |
| https://www.pwc.com/gx/en/financial-services/pdf/pwc-elwood-annual-crypto-hedge-fund-report-may-2020.pdf | |
| thank you! Very good information - looks like our goal of $2m is exactly the median" | |
| Can a small business build an internal investment fund?,9,https://www.reddit.com/r/hedgefund/comments/kq94zf/can_a_small_business_build_an_internal_investment/,"Also wondering if you can start an internal fund from an LLC | |
| i know that public companies (public stocks) invest in ""marketable securities"" which are short term money market funds. perhaps you can buy stocks too? | |
| Did you ever do anything with this? Of course this can be done, but there are a number of reasons why doing this in the same entity don't make sense unless it's a very small amount. | |
| Unless your aunt wants to withdraw from the main business and is looking for something else to do, this will just be a distraction and could be very detrimental to their main business. I would be concerned that some bad investments or decisions could sour family relations unless your son really knows what he is doing. | |
| Just get with an emerging fund that has some track record. Small funds tend to get better returns than larger funds anyway and will usually take smaller subscriptions. If you go this route, make sure the Fund Manager has a sizable chunk of his own money in the funds as well. This keeps them focused and interests aligned! Depending how much you have to invest, that could be a better way to go. I am launching a hedge fund now. We will be open to outside money in a couple months. We had triple digit returns for 2020 (waiting for the audit to be completed soon) and on track for close to the same in 2021." | |
| How do HF's and Prop Firms come up with these seemingly abstract strategies?,11,https://www.reddit.com/r/hedgefund/comments/ki0bhb/how_do_hfs_and_prop_firms_come_up_with_these/,"It will come naturally with experience and practice. When you’re trading VIX options then you have no choice but to learn every detail of their pricing and how its affected by various factors. While usually people do more damage to themselves and look naive when they come up with ideas based on theory, without accounting for real-world scenarios. | |
| Btw, that SPX/VIX trickstery was done by quick-buck artists as you call them. So you’d need to become such a quick-buck artist to be more valuable than people who don’t. Keep in mind that all legal tricks have already been exploited and some previously successful math/quant funds have closed. What Akuna Capital did was potentially illegal and at the least unethical, so you’d have to come up with various unethical ideas to trick others to give you money. Otherwise you’d have to just outsmart everyone in the industry, including people who fought for survival by coming up with new ideas every time their trading firm almost closed. Many of those ideas come from being personally threatened and having millions at stake. | |
| [deleted] | |
| >Keep in mind that all legal tricks have already been exploited | |
| So would you say that coming up with a proprietary strategy is impossible now, or very unlikely? | |
| > When you’re trading VIX options then you have no choice but to learn every detail of their pricing | |
| I understand. So it looks like I need to focus on one area, or instrument, and learn all of its inner-workings down to a 'microscopic' level. | |
| Prop strategies are not necessarily “tricks”, just strategies, and they can work at smaller scales. What may no longer work is arbitrage, or posting false orders to make others think that you’re large buyer/seller, artificially inflating prices like your VIX example, etc. | |
| Strategy-wise you’d playing on even ground and indeed could come up with something that could work, though may not always be scalable. | |
| And yeah, a guy named Malcolm Gladwell said that 10,000 hours of focus/practice will make anyone an expert. Not sure that’s true but it helped me do stuff that no one else may have figured out. The only issue may be focusing on a wrong thing that’s already exploited in every way possible. When you work for someone then at least they can provide some direction, and later you may start seeing stuff no one else does. Too much too worry/think of right now until you have specific direction and see for yourself what you can come up with. | |
| This was really helpful, thanks" | |