How do you start your own Hedge Fund in the UK

[BeginnerJoe]

It never ceases to amaze me people who know how to trade and make good money need free advice. Further, why they need other people's money. Can't they just use the markets as a cash machine ? Lastly, why do they feel they own the forum and dictate what people can and cannot say ? Does having unverified ability to trade somehow gives them ownership of forums ? One final point, would they like to start an offshore bank at the same time ?

 

[safvan]

It never ceases to amaze me people who know how to trade and make good money need free advice. Further, why they need other people's money. Can't they just use the markets as a cash machine ? Lastly, why do they feel they own the forum and dictate what people can and cannot say ? Does having unverified ability to trade somehow gives them ownership of forums ? One final point, would they like to start an offshore bank at the same time ?

I think it has something to do with making *decent money* and making *huge insane money*.

Greed comes into play here.

Making hundreds of thousands of dollars per year or making 10s of millions.

 

[Doomberg]

That was for Joe

I agree with your post above joe about the trading others money part, you could make a lot more profits trading a 6 or a 7 figure sum than a 4 or a 5 figure one... and if you had agreed a fixed rate of say 20% per year you could make a massive amount if your performance is much higher

 

[BeginnerJoe]

I think it has something to do with making *decent money* and making *huge insane money*.

Greed comes into play here.

Making hundreds of thousands of dollars per year or making 10s of millions.

Let's look at it this way. If you are not making enough to buy a couple of hours of professional advice on how to set up a hedge fund, you are in no position to make 10's of millions. In fact you are not even in position to make 10's of hundreds.

 

[Doomberg]

Let's look at it this way. If you are not making enough to buy a couple of hours of professional advice on how to set up a hedge fund, you are in no position to make 10's of millions. In fact you are not even in position to make 10's of hundreds.

Why do you have to go to professional right away?

You could post a computer problem on a bodybuilding forum and get great answers...

The OP may just want some info before possibly taking it to the next level

 

[market_bull]

Ponzi schemes are not illegal. What do you think the UK state pension is? What do you think unfunded final salary public sector pension schemes are?

Ponzi schemes, far from being illegal, are actively run and promoted by our own government.

Shhhhhhh! You're giving away all the secrets!

 

[BeginnerJoe]

Why do you have to go to professional right away?

You could post a computer problem on a bodybuilding forum and get great answers...

The OP may just want some info before possibly taking it to the next level

When you are making tons, enough to start a hedge fund, time is money. So in that situation, you would be banging on the professional's door already, rather than getting involved in a bit of b*tch slapping in a forum.

 

[DashRiprock]

That was for Joe

I agree with your post above joe about the trading others money part, you could make a lot more profits trading a 6 or a 7 figure sum than a 4 or a 5 figure one... and if you had agreed a fixed rate of say 20% per year you could make a massive amount if your performance is much higher

why not just borrow the money in that case :whistling

 

[Doomberg]

When you are making tons, enough to start a hedge fund, time is money. So in that situation, you would banging on the professional's door already, rather than getting involved in a bit of b*tch slapping in a forum.

You can start a hedge fund with no money if you like, and just rely on other peoples money

 

[Chartsy]

It's pretty hard from what i've read to actually make money trading OPM, as in not under a company or hedge fund, as you need FSA authorisation

 

[Doomberg]

why not just borrow the money in that case :whistling

Loan companies don't allow loans for gambling / trading...

Even if one was to lie its difficult to get more than 10k these days, and you'd also be paying about 15% interest on the loan its self so you'd already be 15% behind

 

[DashRiprock]

 

[BeginnerJoe]

It's pretty hard from what i've read to actually make money trading OPM, as in not under a company or hedge fund, as you need FSA authorisation

Setting up a company takes a couple of days and the FSA probably take a couple of months. Don't seem that hard to me if you know how to trade and able/have-connections to convince people to put money in.

One factor noob hedge fund managers never consider is that they will get laughed at and kicked around by the institution brokers because of the 'tiny' amount of money they have.

 

[forker]

Don't you also need to have to have some type of certification before the Fsa would even consider you?

 

[market_bull]

This was immediately saved to my PC.

 

[davidh1819]

Don't you also need to have to have some type of certification before the Fsa would even consider you?

The FSA do not regulate hedge funds beacuse they are exclusive for wealthy individuals that must be acredited. Hedge Funds are straight forward to set up since no one has given me any information i have done my own reseach you will need the following

1. Seed Capital - Money to attract investors and get the fund going.

2. Legal and finacial Services - e.g., investment adviser registration, location of the hedge fund and its management, reliance on safe harbors and exemptions, and accountants etc.

3. Prime Brokerage - Once the lawyer has confirmed the fund is legitimate you will need a broker to execute your orders investment banks like goldman sachs offer this service http://www2.goldmansachs.com/services/services-for/hedge-funds/index.html

4. Office Space

5. Accredited Investors - Now that you have all the above you can now look for investers.

There You GO


The reason why i asked is purley for financial gain and common sence why trade a 5 or 6 figure account when you can trade a 7 or 8 figure account if you are good at trading?

not that i have the money to start one up yet its something i might consider in the future i mean come on wouldent it be great to run your own fund?

 

[YouAreNotFree]

I bet trading an account in the millions is vastly different to trading one in the thousands.

 

[BeginnerJoe]

I bet trading an account in the millions is vastly different to trading one in the thousands.

Yes, the difference is about 1000 fold.

 

[Pazienza]

I'm willing to provide financial backing to a hedge fund start-up. The person running it must have a looooooooooooooooong schloooooooooooooooooong though.

 

[pboyles]

not that i have the money to start one up yet its something i might consider in the future i mean come on wouldent it be great to run your own fund?

This is why you won't get any serious replies. You might as well go onto a football forum and ask how you can be a premiership manager.