How to Start Your Own Hedge Fund

This is a discussion on How to Start Your Own Hedge Fund within the Trading Firms forums, part of the Trading Career category; Originally Posted by louistrader CostaKapo, that was an excellent post. I would enjoy reading more things like this. And so ...

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Old Nov 30, 2014, 8:42am   #25
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Originally Posted by louistrader View Post
CostaKapo, that was an excellent post. I would enjoy reading more things like this.
And so would I. Thanks CostaKapo!!

Kind regards
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Old Jan 31, 2015, 12:44pm   #26
 
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Great post, very informative!
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Old Feb 4, 2015, 1:04pm   #27
 
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So what is the best way to get a LLC up and running?
Is it worth using a service and take the gamble they don't hide things or later popup the hidden charges of items needed or is it really easily done online? any thoughts as it is time...
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Old May 25, 2015, 3:13pm   #28
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Is it possible to have an account with a broker for each investor and then you trade/invest from one account that pools money from all?

Like say you have your main account you trade/buy/sell securities with.

Your Mom invests $100K and you put it in account A.
Your Friend invests $100K and you put it in account B.

You buy $50K worth of stock ABC. It takes $25K from account B and $25K from account B, so it distributes it among accounts.
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Old May 25, 2015, 3:25pm   #29
 
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As someone has posted similarly on another thread, Interactive Brokers have 'Friends and Family' account structures for fewer than 15 ' clients' (which is generally free from regulation).
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Old Jun 5, 2015, 12:18am   #30
 
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The best and cheapest way to start a hedge fund is in the Cayman Islands. Many Hedge funds are actually based there. See below for details on Cayman Islands Monetary Authority

The Cayman Islands: A Guide For Hedge Fund Managers.
http://www.mourantozannes.com/media/...d_managers.pdf
I fairly certain it is about CI$42,000 after everything is finalised and licenses are granted excluding the minimum capitalisation.

http://www.cimoney.com.ky/regulated_...sec.aspx?id=96

The MFL (section 4(1)) specifies that a mutual fund operating in and from the Cayman Islands must have a licence unless: a licensed mutual fund administrator is providing its principal office; it meets the criteria set out in section 4(3), which allows for funds to be registered, or it is exempt from regulation under section 4(4).

Cayman Islands Funds Law 2013
http://www.cimoney.com.ky/WorkArea/D...?id=2147484126

According to CIMA there are three types of Regulated Funds
Licensed Mutual Fund
Administered Mutual Fund
Registered Mutual Fund
minimum aggregate equity interest of CI$80,000 (US$100,000) purchasable by a prospective investor or the equity interests must be listed on a stock exchange approved by CIMA.
Common Fund Vehicles
Exempted Company
The exempted company may redeem or purchase its own shares and may therefore operate as an open-ended corporate fund
These will be the easiest to form and only around $3,500 to incorporate excluding your CIMA license.
Segregated Portfolio Company
An exempted company can also be established as a "Segregated Portfolio Company" ("SPC") with protected cells or portfolios. The SPC makes it possible to provide a means for different groups to protect their assets when carrying on business through a single legal entity. This is like having several exempted companies in one company.
Unit Trust
The unit trust is usually established under a trust deed with the investors' interest held as trust units.
I hear these are especially popular for those dealing with the Asian markets. You could also form a STAR trust but they have a more specific purpose and cannot conduct business beyond the scope of that purpose once established.
Exempted Limited Partnership
The exempted and limited partnership provides a second unincorporated vehicle and it can be formed as easily as the exempted company or the unit trust
Here is a fees list from the Cayman Islands government for licensure and maintenance of corporate vehicle.
http://www.cimoney.com.ky/WorkArea/D...?id=2147484126
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Thanks! The following members like this post: punjabi
Old Jul 9, 2015, 7:46pm   #31
 
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Good post. Thank you
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Old Aug 25, 2015, 5:04am   #32
 
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CostaKapo started this thread
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Originally Posted by lloydbee View Post
So what is the best way to get a LLC up and running?
Is it worth using a service and take the gamble they don't hide things or later popup the hidden charges of items needed or is it really easily done online? any thoughts as it is time...
Can't go wrong with legalzoom TBH.

I personally have registered C Corps and LLC's in the state of Maryland so I am very familiar with the process by now. I had to file a Foreign Corporation charter in PA for my MD Corporation that does business in PA.

They are all very very easy IMHO. Using an entity to do it for you usually expedites the process though.
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