Thinking to start a hedge fund - will I be labeled the new Madoff?

[kevpries]

So...I happen to have a little less than $100k - which I know is a tiny amount for professional capital.
And...that's why I am thinking on how to raise additional funds. One of my ideas was to start a hedge fund and offer investors the option to open account online and deposit money easily...as if this is some online stock brokerage or forex, etc. I am also rethinking whether it will be a good option to offer some minimum interest rate per annum - like 6% minimum. Personally, I work as a software developer at a relatively big company so creating the website will be free in my case - most money will be spent for legal fees and marketing. Finally, I trade options, stocks and bonds for more than 5 years and 1-2 strategies that look as a safe bet - so offering 6% APY looks achievable. But...you know...the obstacle are obvious (weak ecomony, lowered investor's trust, no track record...etc.).

thanks in advance!

 

[BeginnerJoe]

You can trade. But you don't want the money from the market. Instead you want the money from noobs. What gives ?

 

[Hotch]

How exactly are you offering 6% minimum? Going to pay out of your own pocket? I don't see that working.

 

[pboyles]

So...I happen to have a little less than $100k - which I know is a tiny amount for professional capital.
And...that's why I am thinking on how to raise additional funds. One of my ideas was to start a hedge fund and offer investors the option to open account online and deposit money easily...as if this is some online stock brokerage or forex, etc. I am also rethinking whether it will be a good option to offer some minimum interest rate per annum - like 6% minimum. Personally, I work as a software developer at a relatively big company so creating the website will be free in my case - most money will be spent for legal fees and marketing. Finally, I trade options, stocks and bonds for more than 5 years and 1-2 strategies that look as a safe bet - so offering 6% APY looks achievable. But...you know...the obstacle are obvious (weak ecomony, lowered investor's trust, no track record...etc.).

thanks in advance!

I think you should put your money in a bank and give someone responsible power of attorney over it. Clearly you are going to blow it very quickly on one of your crackpot schemes. It's not so long ago you were going to start an offshore bank.

Seriously, you are going to lose your money if you dont forget about all this nonsense.

http://www.trade2win.com/boards/foy...financial-institution-good-business-idea.html

 

[Martinghoul]

So...I happen to have a little less than $100k - which I know is a tiny amount for professional capital.
And...that's why I am thinking on how to raise additional funds. One of my ideas was to start a hedge fund and offer investors the option to open account online and deposit money easily...as if this is some online stock brokerage or forex, etc. I am also rethinking whether it will be a good option to offer some minimum interest rate per annum - like 6% minimum. Personally, I work as a software developer at a relatively big company so creating the website will be free in my case - most money will be spent for legal fees and marketing. Finally, I trade options, stocks and bonds for more than 5 years and 1-2 strategies that look as a safe bet - so offering 6% APY looks achievable. But...you know...the obstacle are obvious (weak ecomony, lowered investor's trust, no track record...etc.).

thanks in advance!

Erm, even if you can achieve good returns on your "safe" bets, what you're proposing to do is illegal. Moreover, the fact that it's illegal is quite obvious, which begs the question of how it's possible that you were not aware of smth like that. Which, in turn, should suggest to any sane investor to stay as far away from any hare-brained scheme of yours as possible.

 

[YouAreNotFree]

From the offshore bank thread.....

'The only serious competition one would face is from HSBC and Barclays'

 

[Pazienza]

This must be a wind up.

 

[pboyles]

You'd hope so.

 

[pboyles]

Kev

Here's one for your hedge fund, the E cigarette.

http://investorshub.advfn.com/boards/board.aspx?board_id=15093

 

[BeginnerJoe]

How exactly are you offering 6% minimum? Going to pay out of your own pocket? I don't see that working.

He gave you plenty of clues on how it works. Here's how Made-off did it:

1. Start a high return fund, promising guaranteed return with completely safe bets
2. First bunch of investors charge in for the deal of the century
3. Sell the fund some more
4. Next bunch of investors charge in for the deal of the century
5. Pay the previous bunch of investors with the money from the subsequent bunch
6. Skim off the top for fund management fees
6. Repeat 3 as often as necessary. No trading is necessary.

It's so easy, the OP would be stupid not to do it. I can see his 100k growing to 1 billion in 2 years. In the mean time he can do a web site for his fund at no cost since he's an IT expert.

 

[new_trader]

He gave you plenty of clues on how it works. Here's how Made-off did it:

1. Start a high return fund, promising guaranteed return with completely safe bets
2. First bunch of investors charge in for the deal of the century
3. Sell the fund some more
4. Next bunch of investors charge in for the deal of the century
5. Pay the previous bunch of investors with the money from the subsequent bunch
6. Skim off the top for fund management fees
6. Repeat 3 as often as necessary. No trading is necessary.

It's so easy, the OP would be stupid not to do it. I can see his 100k growing to 1 billion in 2 years. In the mean time he can do a web site for his fund at no cost since he's an IT expert.

You could have said it in two words - Ponzi Scheme.

 

[kevpries]

anyway....don't have the time to argue as I am busy, can't waste time in forums.
But...most replies are selfevident. It's quite funny though how several people mentioned that I will get money only from fools (as I would want money only from supermasrt people???)...it has mentioned here and in another forum. The real problem is though....that most people are miserable - lets face it. It doesn't sound like a good idea to you, because if you invest $2,000 - then 6% means nothing to you...so most people secretly hope to find another reason and label it a scam. But...whatever....gotta go.

 

[BeginnerJoe]

Are you busy with your hedge fund web site ?

 

[Pazienza]

anyway....don't have the time to argue as I am busy, can't waste time in forums.
But...most replies are selfevident. It's quite funny though how several people mentioned that I will get money only from fools (as I would want money only from supermasrt people???)...it has mentioned here and in another forum. The real problem is though....that most people are miserable - lets face it. It doesn't sound like a good idea to you, because if you invest $2,000 - then 6% means nothing to you...so most people secretly hope to find another reason and label it a scam. But...whatever....gotta go.

Hey Kev,

No offence, but having read over some of your other posts is the real reason that you have to go that the warders at the mental institution from which you are out on day release will call the police if you don't get back to your padded cell by mid-afternoon?

 

[counter_violent]

anyway....don't have the time to argue as I am busy, can't waste time in forums.
But...most replies are selfevident. It's quite funny though how several people mentioned that I will get money only from fools (as I would want money only from supermasrt people???)...it has mentioned here and in another forum. The real problem is though....that most people are miserable - lets face it. It doesn't sound like a good idea to you, because if you invest $2,000 - then 6% means nothing to you...so most people secretly hope to find another reason and label it a scam. But...whatever....gotta go.

This guy ain't bright enough to run his own trading account, let alone a hedge fund
He also has a registered multi-nick...so we will be watching with interest ! Nuff said.

 

[Lightning McQueen]

a registered multi-nick...so we will be watching with interest !

subscribed !

 

[Pazienza]

subscribed !