How do you start your own Hedge Fund in the UK

market_bull said:
Would this link be of any relevance to what you just said?

http://www.fsa.gov.uk/pages/Library/Communication/Speeches/2006/1019_dw.shtml
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Yes, it will be,
Most hedge funds are not 'authorised funds' in that they can't be marketed and sold to retail investors the way a unit trust can be. But they are FSA regulated for their investment activities with all the implications that involves.
Considering that retail funds are basically marketing operations, and hedge funds can't operate in the same way, the single key thing to get a hedge fund up and running is the ability to attract non retail funds without public marketing. Starting off with funds from a major bank to kick off and have good set of high net worth contacts is the way to go.
 
Well Pazienza sounds like he's high net worth and wants to plunge in. The OP is off to a good start. Once you have the first guy in the rest will follow. Going by some estimates that 50% of people here make very good money, the fund will grow to 8 figures in no time. Then even goldman sachs might be interested to offer their brokerage service.
 
BeginnerJoe said:
Well Pazienza sounds like he's high net worth and wants to plunge in. The OP is off to a good start.
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Not so fast. We haven't seen his schlong yet. He needs to post pictorial evidence before the negotiations can proceed.
 
Pazienza said:
Not so fast. We haven't seen his schlong yet. He needs to post pictorial evidence before the negotiations can proceed.
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Let's not be so difficult. I am sure the fund will be happy to give you a 20% return p/a as you are the founder plunger. If the fund doesn't make money from the markets, a special contract clause can be arranged for you to receive the payment from money received from subsequent second traunch investors in lieu of future trading profits. Be warned however your money is locked in for 10 years. However you are free to redeem 2% of the 20% guaranteed annual profit any time you want.
 
BeginnerJoe said:
Let's not be so difficult. I am sure the fund will be happy to give you a 20% return p/a as you are the founder plunger. If the fund doesn't make money from the markets, a special contract clause can be arranged for you to receive the payment from money received from subsequent second traunch investors in lieu of future trading profits. Be warned however your money is locked in for 10 years. However you are free to redeem 2% of the 20% guaranteed annual profit any time you want.
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That sounds like an excellent business model, one that is fair to all concerned.
 
Not wishing to be harsh to the OP, but setting up your own hedge fund?

Some of the questions you get on this site. :confused:
 
I always thought if you had a proven track record of achieving consistent results with a good R:R ratio and no wild drawdowns the first logical approach if you were looking to moving into managing money would be to open a small managed account for people that you knew. At least this way it would give you a feel for managing other peoples money as from what I've read this seems for some people to prove very different from a personal account, Richard Dennis being an obvious example as well as numerous other people I have read about quite a few in the market wizards books if I can rememebr as well.

Also the UCITS regulations have now changed things as retail funds can now apply more diverse investments stratagies similar to hedge funds which has given to a rise in the 'Absolute Returns' field of mutual funds.

Interesting point to mention following on from people talking about Ponzi schemes being legal I'm sure I read a large part of the European side of the Madoff fund was UCITS regulated!
 
in a cta u can basically do wat u want in the trading part, its just a way from the NSA or CFTC or watever to make ok for trading opm i fink
 
DashRiprock said:
in a cta u can basically do wat u want in the trading part, its just a way from the NSA or CFTC or watever to make ok for trading opm i fink
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Yeah I think they are like hedge-funds in that they can't be marketed to retail investors but when it comes down to investment decisions it is completely up to the managers discretion they can do and use whatever instrument/strategy they want. Ed Seykota's CTA is the highest performing I think, some crazy returns and the guy who bought the redsox baseball team I think it was them can't remember.
 
john henry i think, the won wat owns liverpool.

2 b a cta u need things 2 sho can handle orders all the time, do accounting and stuff. its a good stepping stone if u dont need gnats c0ck commissions
 
Pazienza said:
Not wishing to be harsh to the OP, but setting up your own hedge fund?

Some of the questions you get on this site. :confused:
Click to expand...

In fairness to the OP, hedge fund is just a byword for unrestricted (i.e. not pension or insurance based funds which are limited to investing in some securities) investment fund (do hedge funds actually hedge anything? methinks not since they take a severe beating whenever the market turns against them), anyone can found an investment fund if they can convince others to invest with them.

If you have:

a)the gift of the gab
b)a good, sneaky lawyer who can word things in your favour
c)access to somewhere nice and overseas where accounting rules can be changed for hard currency
d)access to fools
e)no morals

you can found a fund with zero risk to your own money, just gamble and if you win take a slice if you lose oh well who cares.
 
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