Stocks & Commodities V. 32:9 (33): Q&A by Don Bright
Product Description
Q&A by Don Bright
HEDGE FUND BASICS
We have a small group of investors/traders. We like to think that we’re somewhat knowledgeable about the markets and trading, and we’re considering forming a hedge fund of sorts. I have some basic questions. Can you help?
I’ll try to shed some light on the subject (see my answer to the next question), but if you choose to proceed, consult a good securities lawyer, and find a compliance officer before filing any formal documents.
What exactly constitutes a hedge fund? My understanding is that it simply “pools” investor money run by one or more manager/traders. The investors get most of the returns of the fund, and the management keeps a fee plus a percentage of the profits.
There are many misconceptions about hedge funds these days. I suggest you take a step back and create a business plan for what you are trying to achieve by entering into this venture. If you and/or your group are making good returns and simply wish to “ramp it up” a bit with more capital, then there are alternatives that may work better for you.
HEDGE FUND BASICS
We have a small group of investors/traders. We like to think that we’re somewhat knowledgeable about the markets and trading, and we’re considering forming a hedge fund of sorts. I have some basic questions. Can you help?
I’ll try to shed some light on the subject (see my answer to the next question), but if you choose to proceed, consult a good securities lawyer, and find a compliance officer before filing any formal documents.
What exactly constitutes a hedge fund? My understanding is that it simply “pools” investor money run by one or more manager/traders. The investors get most of the returns of the fund, and the management keeps a fee plus a percentage of the profits.
There are many misconceptions about hedge funds these days. I suggest you take a step back and create a business plan for what you are trying to achieve by entering into this venture. If you and/or your group are making good returns and simply wish to “ramp it up” a bit with more capital, then there are alternatives that may work better for you.
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |