Posted: 7/9/2012 9:54:29 PM
Hook, thanks for your post, I appreciate the info.
As a follow up, do you have any suggestions on who to speak with? Is there a broker or service that helps with something like this?
Also, in terms of an audited return, what does that mean? All my investments are level 1 in nature (primarily stocks, a few options here and there, publicly traded, easy to value), so are you just saying I'd need to hire an audit firm to slap a signature on a printout from my Interactive Brokers account? Will I run into problems if I've utilized 2 different accounts during the time, (the other one being Scottrade) and the fund that is set up in my LP's name has only been in existence for about a year of that time? Will I need to re-establish the same sort of track record in the LP's name, or would my personal account be acceptable to demonstrate the same sort of track record?
In terms of fees, I'm not even looking at the 2/20 structure, I don't need that to survive. I'm looking to do this in conjunction with my job at least to start. I've been doing it like that for the last 8-9 years. I consider my fund primarily a mutual fund, that outperforms mutual funds. I'm just looking for a fee structure of maybe 1-1.5% per year (utilizing some combination of incentive fee/management fee ideally that will average out to that long-term) I like the hedge fund set up for the flexibility it provides (to short a few puts, use covered calls, etc., go to cash if I want) and the barriers to entry just seem much less with it than with a traditional mutual fund setup. I feel like my low fee structure should provide me a good competitive advantage.
In terms of capital, obvious answer, I'd like as much as possible, haha. I primarily trade mid or large-cap stocks, with a sprinkling of small-caps, micro-caps, so I could do what I do very easily in even the $100's of millions.
Ideally, what I'm looking for (if it exists), is some sort of broker who I can tell my story to, explain my methodology to, show my results to, and if they like what they see, then they'd help me with introductions, set up meetings, tell me what I need to move forward, etc. I'm assuming I'd need to dole out a decent percentage of equity in the ownership structure of the fund, which is something I'd be very willing to do if I could find someone who can help me get it up and running.