Ask A Hedge Fund Fraud

[wawawowee]

My fund is event driven; I do not invest based on sectors only financials and chart analysis.

You can open a fund in other states, NYC and CT just have better structures to charge performance fees. In some states you must be registered as an investment advisor (I do not know which ones)

What sector is most of your fund in?

And I know new York is the finance capital ... but is there anyway that a successful fund can be started ion other parts of the country? Dallas Houston Atlanta Los Angeles Seattle San Francisco....

If your fund is event driven then it is a Macro fund.  

Financials driven --> value 

chart--> technical fund ( although there aren't too many solely technical driven hedge funds)

 

[gold st capital]

That assumption is wrong, you cannot start a fund with 1k. No credible prime broker will take your fund aboard.

There a definition of who qualifies as an investor and that has been defined by the SEC. It's not so much what you think a hedge fund is but what the fund defines itself as and that it fits within the regulatory guide lines.

Why would the persons money not be in some form of savingings account... Not sure I understand that. 1k is only enough if you qualify as an accredited investor and or the manager allows you into the fund *** unaccredited.

I can technically start a hedge fund with 1k.  That's not what people think of as a Hedge fund though. 
Are people who have money in savings accounts technically investors? Yes.

 

[gold st capital]

People also say their funds are long short and other names. They are just broad definitions of what happens in the fund. You don't actually know what happens or doesn't happen unless you see a partnership agreement.

Your definitions are correct but in practical application things do not work that way.

If your fund is event driven then it is a Macro fund.  

Financials driven --> value 

chart--> technical fund ( although there aren't too many solely technical driven hedge funds)

 

[ice city fc]

Can the federal government really sponsor you for the Series 7? I'm assuming that was a mistake. 

 

[gold st capital]

They can I just have not had the time to give u the link. I will get it to you monday

Can the federal government really sponsor you for the Series 7? I'm assuming that was a mistake. 

 

[ice city fc]

Oh ok thanks I appreciate it. 

 

[antidope]

I'm studying for my 7 right now. Cant stand it. I just want to make it to my firms compliance department but in order to move anywhere I need at least my 7 and preferably my 24

 

[wawawowee]

That assumption is wrong, you cannot start a fund with 1k. No credible prime broker will take your fund aboard.

There a definition of who qualifies as an investor and that has been defined by the SEC. It's not so much what you think a hedge fund is but what the fund defines itself as and that it fits within the regulatory guide lines.

Why would the persons money not be in some form of savingings account... Not sure I understand that. 1k is only enough if you qualify as an accredited investor and or the manager allows you into the fund *** unaccredited.

I can technically start a hedge fund with 1k.  That's not what people think of as a Hedge fund though. 
Are people who have money in savings accounts technically investors? Yes.

I wouldn't need a prime broker in the traditional sense.  I wouldn't need the SEC's blessing either. 

If I wanted to be a legit player I would. However, I could cobble together some money from friends and family, open an IB account and call myself a hedge fund. 

Do you want to send me your prospectus? 

 

[gold st capital]

That wouldn't be a hedge fund, you would just be privately running money. Also you would need to register a LP to get on the IB platform. with familly money you would be co-mingling (not all the same ssn numbers) you would run into a few problems by trying to just stick it together it won't work. Every broker you deal with is just that a broker; one that does answer to regulators and gets audited.

If your friends and family have enough money for you to run the fund without needing extra investors then yes you could have a cobbled together fund. Soon as you get an outside investor what happens then? You need all the functions of a hedge fund. There is far more to this than you think.... Oh and very few if any credible investors respects IB. Big money is kept at big clearing firms. Pershing, Jp Morgan Goldman Sachs. Etc

If you are accredited I can send you my prospectus.

I wouldn't need a prime broker in the traditional sense.  I wouldn't need the SEC's blessing either. 
If I wanted to be a legit player I would. However, I could cobble together some money from friends and family, open an IB account and call myself a hedge fund. 


Do you want to send me your prospectus? 

 

[wawawowee]

That wouldn't be a hedge fund, you would just be privately running money. Also you would need to register a LP to get on the IB platform. with familly money you would be co-mingling (not all the same ssn numbers) you would run into a few problems by trying to just stick it together it won't work. Every broker you deal with is just that a broker; one that does answer to regulators and gets audited.

If your friends and family have enough money for you to run the fund without needing extra investors then yes you could have a cobbled together fund. Soon as you get an outside investor what happens then? You need all the functions of a hedge fund. There is far more to this than you think.... Oh and very few if any credible investors respects IB. Big money is kept at big clearing firms. Pershing, Jp Morgan Goldman Sachs. Etc

If you are accredited I can send you my prospectus.

I wouldn't need a prime broker in the traditional sense.  I wouldn't need the SEC's blessing either. 
If I wanted to be a legit player I would. However, I could cobble together some money from friends and family, open an IB account and call myself a hedge fund. 


Do you want to send me your prospectus? 

You're correct but I was just pointing out that the legal definition of a HF and the cultural one are two different things. 

There isn't more to it than I think. It's not particularly hard to start a hedge fund as defined by law. The hard part is attracting investors. 

Just like there are shops that run money privately which are more legit than many hedge funds. 

 

[1 9 8 5]

Had to join off the strength of this thread, love the knowledge being shared in here.

OP, what fixed income instruments does your fund invest in if any?
 

 

[gold st capital]

I agree with the fact that it is not hard to Register a HF. To start one and run it is difficult. Guys cant get clients with a large wirehouse name on their business card so they definatly would not have a chance in tje hedge fund world. The brokerage industry as a whole in many ways is crookery. Just try to keep your nose clean.

You're correct but I was just pointing out that the legal definition of a HF and the cultural one are two different things. 

There isn't more to it than I think. It's not particularly hard to start a hedge fund as defined by law. The hard part is attracting investors. 
Just like there are shops that run money privately which are more legit than many hedge funds. 

 

[gold st capital]

Gold Street invests in the following fixed income instruments:

• muni bonds
• corp bonds
* steepeners
*cms spread bonds
*junk bonds
*fix to float bonds

• Mortgage Backed Securities
* inverse floaters
* private label
* IO's

Bonds are used in the fund to eat the cost of my service providers.

Had to join off the strength of this thread, love the knowledge being shared in here.

OP, what fixed income instruments does your fund invest in if any?

 

 

[1 9 8 5]

Gold Street invests in the following fixed income instruments:

• muni bonds
• corp bonds
* steepeners
*cms spread bonds
*junk bonds
*fix to float bonds

• Mortgage Backed Securities
* inverse floaters
* private label
* IO's

Bonds are used in the fund to eat the cost of my service providers.

Got it.

What percentage of your fund's returns is allocated to fixed income then?

 

[gold st capital]

30%

Got it.

What percentage of your fund's returns is allocated to fixed income then?

 

[thnderdwnundr]

OP, what would be your best advise career wise if I wanted to get into the finance industry? What area would you recommend getting into?

 

[gold st capital]

The best thing to do getting into finance IMO is to get hands on experience.

You need to give me more info on what your background is and what do you want, money, job security, etc. in essence I need to know what you have a passion for.

Answer that and I can answer you better

OP, what would be your best advise career wise if I wanted to get into the finance industry? What area would you recommend getting into?

 

[thnderdwnundr]

The best thing to do getting into finance IMO is to get hands on experience.

You need to give me more info on what your background is and what do you want, money, job security, etc. in essence I need to know what you have a passion for.

Answer that and I can answer you better

Thanks for the reply mate,I can't answer those questions to be honest. I like money. Let me rephrase my question possibly. What is the best field of finance/study to begin with to allow for a successful career in the industry?

 

[gold st capital]

work in Investment banking, Private equity, and  wealth management

 

[fraij da 5 11]

Welp.

 

[$tacy]

Edit title: ask a car salesman with a s curl

 

[harlemtothebronx]

Oh.

 

[cliffordsmith]

Pt 2.

 

[waddupdoe]

N

 

[captainsneakerhead23]

I swear y'all on a roll today

inb4 this one gets the handcuffs as well