What does it take to start a hedge fund?
As in, what are the basic requirements, forms I would need, etc. Any help or links to helpful webpages would be greatly appreciated!
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about 1 year ago
Well, first you need to be a registered broker and this requires passing several tests. If you are already a broker, you need to hire an attorney to help you with all the SEC filings that are required and to create your prospectus. Then you will need to sell your fund idea to investors.
Good luck.
about 1 year ago
You get people to trust you with a bunch of their money and then you invest it for them. You need to find a broker to clear your trades for you. Even the biggest funds are not themselves brokers because brokerage services are cheap and it isn’t worth the trouble to do it in house.
You don’t have to worry about being a registered investment adviser until you get 15 investors. Even then, you don’t have to register if you have a lock in period of at least 2 years.
about 1 year ago
Having a lot of money helps!!!
about 1 year ago
Generally agree with Bob since primarily, you will need investors and capital first. For those, you need a good track record or atleast a strategy. Later, a good prime broker to provide leverage and trading. And your lawyers can draft up any LP documents you might need.