Hedge Fund Opportunity

[phoenixcapital]

Do you want to own a slice of a Hedge Fund?

Yes, well do not miss this incredible opportunity..........

I'm looking for like minded individuals who are fired up and hungry for success!

My plan is to set up a London based multi-strategy Hedge Fund, with a group of 10 individuals who want to play an active part and have investment capital of £100,000 available.

The objective is to use the £1million raised for the purpose of gaining FSA authorisation, taking on full time traders, setting up a sales and operations team, a couple of front-office IT wizkids, renting a Mayfair based office, to start a strategic marketing campaign directed at HNW individuals and institutional investors, and to register a Carribbean based fund, listed on the Irish stock exchange.

Initial estimates are £250,000 required for fund incorporation and launch, and subsequent capital used for setting up trading accounts with various brokers, giving us £750,000 purified trading capital, which could be leveraged for certain asset classes.

In return, I am offering a 2.5% stake in the company, and corresponding proportion of the management and performance fees.

Provided we get the right calibre of team members together, potential assets under management at launch could total 50MM - 100MM.

Enquiries from Traders are welcome. We're particularly interested in individuals with expertise and demonstrated performance in Emerging Markets, FX, Commodities, FoF, Equities, Derivatives, Fixed Income, Stat Arb, Quantitative Trading.

Email us on [email protected] for further information.

 

[crude_lover]

sure i would like to invest a billion pounds into this. Just add my name to the list as Mr R. Branson any chance we could chanve it to virgin capital aswell ?

 

[grantx]

Phoenix,

So someone puts in £100,000 (10%) for a 2.5% stake which leaves you with a 75% stake. Is your background in CDO sales?

A suitably qualified individual can do the same for considerably less than £100,000 and retain 100%.

I reckon your £250,000 start-up is somewhat optimistic. £250,000 may cover your capital requirement but I wouldn’t be surprised if this was nearer £500,000. A Compliance officer alone will set you back around £100,000 pa. £1,000,000 start-up would be more realistic.

How much are you putting in?

Good luck.

Grant.

 

[Captain Currency]

The objective is to use the £1million raised for the purpose of gaining FSA authorisation, taking on full time traders, setting up a sales and operations team, a couple of front-office IT wizkids, renting a Mayfair based office, to start a strategic marketing campaign directed at HNW individuals and institutional investors, and to register a Carribbean based fund, listed on the Irish stock exchange.

Whats the last bit all about?

 

[phoenixcapital]

Captain Currency, The Phoenix Multi-strategy fund would be domiciled in a Caribbean tax haven like the Cayman Islands. The adminstration in the Caribbean would allow us to create a master-feeder structure attracting US based HNW's. The fund can be listed on pretty much any exchange, but the Irish stock exchange is particularly competitive with their listing fees.

 

[phoenixcapital]

Grantx, a lot of research has gone into this project, and putting aside £250,000 for is actually quite realistic. The objective would be to outsource as much of the operation as possible, i.e compliance, fund adminstration and accounting. The in-house personnel will essentially comprise of key individuals, i.e traders, marketing and IT. The focus is on attaining FSA registration and putting together a formidable cross-asset class trading team. The marketing of the fund should then be pretty much straightforward. There are a lot of HNW individuals out there, family offices, FoF's and even institutional pension money, looking for a diversified investment strategy to put their money into. We are about to enter a very interesting period in the financial markets, where new investment opportunities will be created and diversification will rule.

 

[grantx]

Phoenix,

Fund admin and accounting can be external but I'm afraid you will need a compliance officer. No two ways about it, I'm afraid.

Grant.

 

[A Dashing Blade]

+ at least 1 risk and 1 legal bod.

 

[Captain Currency]

The fund can be listed on pretty much any exchange, but the Irish stock exchange is particularly competitive with their listing fees.

Hello Phoenixcapital,

Getting your fund listed on the ISE, 4 words: Chance, Not, Chinaman's, A

One of the conditions to get ISE listings for an investment fund is the Investment manager. He/she must
demonstrate appropriate expertise and experience to manage the fund. The ISE will normally be satisfied in this regard where the investment manager has at least $100 million of third party funds under discretionary management. In any other case, the ISE will require additional information and evidence supporting the investment manager’s suitability.


Kind Regards,

 

[phoenixcapital]

Hence, the reason why I'm searching for individuals who can not only bring a decent level of investment capital to the table, but also expertise and experience as traders or fund managers. I assume this opportunity will appeal to those investment managers out there who have been working for an asset manager/investment bank/hedge fund and are keen on having something of their own. It is all too easy to fall into a comfort zone and be content with the 9-5 renumeration, but I'd imagine there are many individuals out there who given the opportunity could excel for themselves. It is all about exercising entrepeneurship and having the guts to go it alone. Here I am presenting an opportunity to join a team of like minded individuals with similar aspirations to mine, so a managed risk situation. I've worked for many Hedge Funds, Asset Managers and Investment Banks in my career, and the one common trait that I've consistently seen is that it is the founders of the organisation that seem to have the best time! You could be one of them..............it's up to you.

 

[Captain Currency]

Hello again Phoenixcapital,

I think you would be great in the sales dept yourself

But as Duncan would say on Dragons Den "It's not for me, I'm out"

Did you hear about the successful hedge fund manager called Seth Tobias, been a successful manager brings plenty of stress and risks.

PS: Just had a butchers at your profile. Do you have any pics of your trading arcade?

Kind Regards,

 

[phoenixcapital]

For your information GammaJammer, I probably will take on the role of sales in this operation (despite having a background in Quantitative Finance). Someone has to go out there and pull the HNW and institutional money in. After-all the larger the assets under management, the greater the management fees!

 

[phoenixcapital]

In terms of renumeration, all investors will be eligible for not only a 25% (2.5% x 10 investors) stake in the company, but also 25% of all performance and management fees. This could amount to a significant amount of money. For example, if we raise a £100MM at launch, that's £2MM just in management fees straight off, of which £50,000 (2.5%) goes back into the pockets of the investors. Say over a period of a year we make a mediocre return of £10MM or 10% (raising mark to market fund NAV from 100 to 110), that's £2MM performance fee of which £50,000 (2.5%) goes back into the investors pocket. Hence within a period of 12 months your investment capital is returned to you, and you still have a 2.5% stake in the company. Let's look forward 5 years.......the fund has a £1Billion under management, of which management fee alone amounts to £20MM (2%) (that's £500,000 each (2.5%)) and say again the performance is in the region of 10%, that's £20MM just in performance fees of which the investor receives another £500,000 (2.5%). So after 5 years with the Hedge Fund, the investor is receiving a residual income of £1MM per year. The figures may seem disproportionate, but they are real (you do the math.....based on a 2 & 20 fee structure). There are Hedge Fund professionals out there that consistently command this type of income............that could be you! By the way, these figures are based on a mediocre average return of 10%. Just imagine if our traders do a Chinese Hedge Fund special and return 30, 40, 50 or even 60%........it is conceivable!

 

[shadowninja]

You might wanna try posting on Pistonheads.com. There's a lot of money there. Warning: you may get torn to shreds as there are some very shrewd, knowledgeable types on that forum... people who work in high positions in the industry.

 

[phoenixcapital]

Thanks Shadow.

I've been waiting for this moment for a very long time.........so I'm ready for tearing!

 

[darktone]

OK did I miss something here? This looks like a site for people that like cars. A lot.

Hes talking bout the guys that banger race Bentleys!

 

[BSD]

First off, I'll definitely wish you the best of luck if this project is above board.

But for someone asking others to fork over 100K to the stewardship of an offshore umbrella it would, I suppose, be good to know if there are any track records, employment infos or CV's of yours available with numbers that can be called ?

Nothing on your web site either in that direction ?

Doesn't have to be here, but is stuff like that available at all ?

Also, starting off with 10 people seems far too much, John Paulson had no more than 9 employees when he was running 700 million in 2003.

Keeping costs down is one of the most important things to ensure startups will see the light of day.

Also, I don't quite see how you are going to pay your team after all startup fees etc have been taken care of, particularly in view of the fact that you will want to retain as much funds for trading as possible.

Your numbers above will only work IF you start up with your projected 100mill, AND manage at least your projected 10% return.

Of course both are possible.

But what's Plan B if something goes wrong ?

Where is the funding for that ?

Lack of funding is almost always what kills young startups, people severely overestimate what they can do in the short run, while underestimating what is possible in the long run.

Not being negative here, just realistic.

I can't think of anything better to do in life than starting up your own thing and seeing it fly, but it'll only fly if feasible plans are made for contingencies.

Last point, if you're the one starting up a firm it makes absolute sense to retain as much ownership as possible if you want to get anywhere any time soon, but what's good for you is decidely less attractive for what you are seeking, not just passive investors, but entrepreneurial partners investing not just their money but their talents and time.

If you need outside capital to the extent that you do, and from the very outset, then asking your partners to invest 10% of startup costs while receiving only 2,5% of ownership seems mighty ambitious to me and not something that would attract really entrepreneurial types, but OK, to each their own, and supply and demand will take care of that.

Anyway, if you and your project are for real, all the best !!!

 

[phoenixcapital]

I have been operating as a consultant in the City for the past 15 years. My resume comprises of some of the best investment banks, asset managers and hedge funds around. So providing references wouldn't be a problem at all. It's my experience within the Hedge Fund world that has particularly motivated me to setup my own thing. I have all the enthusiasm towards this project, but classically the only thing holding me back was having sufficient startup capital available. Hence, the idea of setting up a team of partner/investors who play an active full-time/part-time role in the operation is what I am trying to materialise. No doubt the financial markets are experiencing some significant volatility at the moment, particularly on leveraged products and quant strategies. Real estate is about to bubble over, commodities are also showing these signs, green energies are also looking over valued, but it's at times like this that new opportunities are created. The financial markets have always lacked certainty, but certainty is being created before our very eyes, and it would be foolish not to take advantage of that. Risk management and quantitative finance is one of my fortes, and the aim is to ensure that we have sufficient risk controls in place to prevent any significant fund drawdowns. Easy, and gently does it, and the rewards will come! As with any business startup, the risks will always be there, but that's the very reason why we need to assemble the right team at the outset, one that can apply the braun and the brains towards ensuring that this startup doesn't just remain a startup, but becomes a significant entity in years to come.

 

[BSD]

Sounds good.

Hope it works out !

 

[fifty2aces]

You still haven't explained why you expect people to contribute 10% of the startup capital for a 2.5% share - I'm presuming that you get the other 7.5% of each person's investment? No doubt you have a lot to bring to the table, but this still seems a bit strange.