RE: How to start a hedge fund

["cwest" <cwest@xxxxxxxxxxxx>]

Documentation to pool (in generic terms) funds has to pass muster with
various Federal and State regulators, and if you wish to promote your
fund publicly, its necessary to think of issuing participation in terms
of a public offering. That ought to say it all in terms of a
show-stopper. Public issues, no matter what they're for, necessitate
considerable expenses all the way from startup to management. Several
100K would be a minimum to register, and 1-2 mill is the norm to make it
work, let alone a marketing budget.

Managing client-accounts is far simpler and affords considerable
regulatory protection all round. Managing client-accounts as a broker is
even easier. Choosing a course to follow should be dictated by your
objective, obviously. If you can elaborate on your plans perhaps I can
offer some specific info.

Colin West

-----Original Message-----
From: Calandra Sikes [mailto:jen450us@xxxxxxxxx]
Sent: Tuesday, October 22, 2002 10:29 AM
To: cwest
Cc: omega-list@xxxxxxxxxx
Subject: RE: How to start a hedge fund
Importance: High



Thanks to everyone who responded this mail.  All the information was
very helpful.

Managing client accounts sounds interesting.  What's
the main difference between managing client accounts
and operating a hedge fund?  Hedge probably require
more to get licensed and for reporting, but how does
that compare to the amount of effort required to set
up and manage client accounts?  Are there limits on
amount of managed money in client accounts?

Is there a site that contrasts the two forms of MM?
And how does this compare to Portfolio Management?

--- cwest <cwest@xxxxxxxxxxxx> wrote:
> In a nutshell, forget it. Hedge Funds are old-hat
> and cost a
> considerable amount to do sucessfully. Managing client-accounts is
> much simpler in all repects, imo.
>
> Colin West
>
> -----Original Message-----
> From: Calandra Sikes [mailto:jen450us@xxxxxxxxx]
> Sent: Tuesday, October 22, 2002 3:18 AM
> To: OMEGA-LIST@xxxxxxxxxx
> Subject: How to start a hedge fund
>
>
> Say you have some systems you've traded succesfully
> for a year or so and you would like to trade it for
> other people.  You want to start a hedge fund but
> are
> unsure what the first steps should be since all you
> know is sytsem development and trading from your
> secluded office.
>
> What are the first steps?
> How do you publish your trading results to attract
> customers?
>
> Any advice would be greatly appreciated.
>
> Jen.
>
>