How do you start a hedge fund?
828829
Depends on whether you are planning to serve taxable U.S. clients or international clients and tax-exempt U.S. clients (such as pension funds and university endowments).  To start a U.S. fund, you need to form a limited partnership.  Funds for international clients and tax-exempt U.S. clients are usually structured as corporations domiciled in convenient jurisductions (Caymans, Bermuda, BVI, Jersey, Guernsey, Luxembourg, etc.)\n\nTo start a serious fund, you need an auditor (and not just any auditor, but a specialist firm with an existing hedge fund practice), a legal counsel (in case of off-shore funds, two; one in the U.S., one at the fund's domicile), and an independent administrator.  Needless to say, you are also going to need a prime broker, who will also serve as custodian for fund's assets.\n\nOnce all service providers are in place, you can have your lawyers draft a private placement memorandum and have it reviewed by auditor, administrator, and prime broker.  Once the details are hashed out, you can start marketing the fund on your own or hire a third-party marketing firm to do it for you...
1110673
The biggest hedge funds and investment banks hire Ph.D.s from places like MIT to develop trading strategies.  Any worthwhile positions where arbitrage might exist are immediately exploited.\n\nThink about it like this.  If the masses could earn riskless profits in excess of transaction fees with just a few econ courses in their back pockets, how long do you think the opportunities would exist in an efficient or semi-efficient market?\n\nIf you want to pursue a trading strategy that doesn't simply track a index, read up on some of the persistent return anomalies (i.e. momentum, book to market) in the finance academic literature.  These are still contentious among academicians, so don't expect to find a how-to guide.
708031
Gotham Capital was/is a hedge fund and is not open for just any investor.  http://en.wikipedia.org/wiki/Joel_Greenblatt    Because this is a private investment fund expenses and returns are not public information.  However ...\n\nMore information on his current stock picks and investing philosophy is available at http://www.gurufocus.com/ListGuru.php?GuruName=Joel+Greenblatt
645837
Check out this site.\n\nhttp://www.hedgefundemployment.com/jobseeker_home.php?PHPSESSID=6f59440367a7d11acee0cc79fbab76ec
470681
By referral is the best.  If not, set up appointments and interview them and ask about their investment strategies and ethical standings.\n\nBut before any of this, read Investment for Dummies to bring yourself up to speed on investments.  You have to know the minimum before investing.
36177
You can open accounts at Vanguard or Fidelity, both have lower expense ratios compared to the competition. Most funds have a minimum initial investment of $2500, unless it's for an IRA. You can set up automatic deductions to buy into the fund monthly.\n\nAlternately, you can buy ETFs (Exchange Traded Funds). There may be an ETF that tracks a specific mutual fund you are looking at. Vanguard has a huge list on their web site. You can buy the ETFs through a discount online broker like scottrade.com or etrade.com. You pay per transaction but the maintenence fees are usually slightly lower than buying an actual mutual fund.
824807
Congratulations on getting started. It’ll help you more than you know! \n\nYour first dollars should be spent on getting educated on investing. You don't have to train to trade them professionally, but we are talking about your future here. So the more you learn, the more it'll help you! So let's start there.\n\nYou ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!\n\n\nHow to invest depends on what you already know. We'll assume that you're beginning since you say you're new!\n\nA good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. It’s widely available new or used.\n\nAnother good one is one of Jim Cramer's books (he’s got a few). \n\nBut books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com\n\nFor free, you can start by visiting thestreet.com and investopedia.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc. \n\nIf you get a chance, watch Mad Money on CNBC. Don't trade any of his picks until you track many of them over time. Just use the show to get you to understand some basics and get a feel for the market itself.\n\nNext, subscribe to something like Investorsbusiness daily or something like that that can help you identify good stocks.\n\nOnce you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).\n\nFor discipline (which is crucial to successful trading), probably Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter\n\nI know that’s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin. Take your time, and let it seep in. \n\nAs you get up to speed, you should papertrade to practice (highly recommended). This should help reduce your losses in the beginning as you get used to buying/selling.\n\nYou can practice for free on almost any reputable broker site (optionsxpress, scottrade, thinkorswim, etc). And yes, you can definitely deal easily online.\n\nStart slow, then as you figure things out, you can buy more shares.\n\nCongrats again on getting started. If you have any questions, please let me know. \n\nHope this helps!\n\n\nAdditional edit: I tried to answer your question, but you haven't confirmed your email yet, so I can't reply.
617262
The first thing you need to do is read.  Ben Graham's the intelligent investor is a good place to start and then look at books on Warren Buffets methods.  Dont do momentum investing or day trading its to risky and the commisions will kill your returns.  The best way to go is value investing all the way.  I usually look intially for companies with 15 percent return on equity for at least 5 years and a p/e ration of between 5 and 15.  Also look for a history of positive earnings.  Thats real basic and then you will need to learn to read income statements, balance sheets, and understand cash flow and stuff but thats someplace to start.\nIf you dont have an ira you should get one a roth ira is best if you qualify.  I recommend putting your ira in mutual funds and vanguard is by far the best company.  Their expense ratios are way lower than other companies and this will pay off big in the long run.  Well, I hope that helps.  Good luck.
426193
To run a business, money is required. If you start a company, you can approach investors and sell them shares of your company (subject to your fulfilling various rules regulations and conditions specified per law). These shares are called stock. The platform that allows you to legally trade in these shares is a stock-exchange, where anyone eligible can buy shares through a broker or sub-broker who against a small commission trades the stock that you want to buy or sell.\n\nAs far as how to invest is concerned, it is advisable that you start by investing in good equity Mutual Funds. Test the waters, do some study of the various companies if you can, or consult a financial adviser. (I am one, You can email me your contacts and if I can, I'll get back to you)\n\nHowever, don't invest all your money in one asset class alone, spread it across various other classes such as Post Office Savings Schemes, Bank Fixed Deposits, Real Estate, Insurance, Government Bonds, and directly equity once you are confident that you understand the market. Each and every person has his or her own financial needs and hence specifically defining the amount to be invested would be difficult unless the your current status is known.\n\nTaxation is another important aspect that needs looking into. Please do include your taxation liabilities in your financial planing otherwise you could end up with a lot of trouble with the taxman.
187267
I just want to clarify that there are MANY licenses/requirements, even if you have less than $25 Million in assets.  The $25 Million threshold only applies to registration under the Investment Advisers Act of 1940.  Regardless of assets, you wuld still have to structure your company to be exempt from the Investment Company Act of 1940, and you would have to apply for a Regulation D exemption from the Securities Act of 1933.  If you want to raise more than $1Million under Reg D, you will also need an audit.  Additionally, you must register at with the state securities commission in every state where you offer securities (shares of your fund).  If you have less than $25 Million and therefore are exempt from federal Investment Adviser registration, you probably have to register as an Investment Adviser in each state where you sell shares of your fund.\n\nDisclaimer: This is not legal advice.  Consult with a lawyer.
290600
Dude, you need to check out what is called an indexed mutual fund. The way it works is the company guarantees your full invested capital; so you can't lose that. The money that they make is added to the value of your fund, but you have to lock it in for a minimum amount of time; can be as long as ten years. This is a good place to start out. If your feeling more daring invest in silver or mining companies like Pan American Silver trades on the New York Stock Exchange under the ticker PAA. This baby is on rails right now, you can check them out on their web site and research their history. Hey your the blunt guy aren't you? Well good luck towards your first million and keep living the American dream.
349626
However much money you want to put into it.  A lot of times it depends on which company (Edward Jones, Vanguard, Fidelity, etc. etc.) you want to start it with and if you already have accounts w/these companies or not.  If you get a mutual fund through a company and you have a full-service one, then you will have to pay fees/commissions but its not much (like 5%) and its TOTALLY worth it b/c then you don't have to worry about, manage it, or diversify it.  And once you have the mutual fund, it will always grow unless there is a recession in the economy or a big stock market decrease.
1104537
There are two fund families that promote short selling strategies.\n  They are Rydex Funds, and Pro-Funds\n  Obviously the government permits it AS LONG AS THE CUSTOMER HAS BEEN INFORMED OF IT.  IT IS LISTED IN THE FUND PROSPECTUS.\n  Additionally, typical hedge funds participate in these actions.
136212
You have to practice at least two years with other companies before starting your own investment
902393
Congratulations on getting started. It’ll help you more than you know! \n\nYour first dollars should be spent on getting educated on investing. You don't have to train to trade them professionally, but we are talking about your future here. So the more you learn, the more it'll help you! So let's start there.\n\nYou ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!\n\n\nHow to invest depends on what you already know. We'll assume that you're beginning since you say you're new to this!\n\nA good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. It’s widely available new or used.\n\nAnother good one is one of Jim Cramer's books like Real Money (he’s got a few). \n\nBut books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com\n\nFor free, you can start by visiting thestreet.com and investopedia.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc. \n\nIf you get a chance, watch Mad Money on CNBC. Don't trade any of his picks until you track many of them over time. Just use the show to get you to understand some basics and get a feel for the market itself.\n\nNext, subscribe to something like Investorsbusiness daily or something like that that can help you identify good stocks.\n\nOnce you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).\n\nFor discipline (which is crucial to successful trading), probably Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter\n\nI know that’s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin. Take your time, and let it seep in. \n\nAs you get up to speed, you should papertrade to practice (highly recommended). This should help reduce your losses in the beginning as you get used to buying/selling.\n\nYou can practice for free on almost any reputable broker site (optionsxpress, scottrade, thinkorswim, etc). And yes, you can definitely deal easily online.\n\nStart slow, then as you figure things out, you can buy more shares.\n\nCongrats again on getting started. If you have any questions, please let me know. \n\nHope this helps!
398114
There are lots of mutual funds that will take $100 to get you started.  So a search in Yahoo Finance or MSN for funds that start with a min investment of $100.  I have been an investment advisor for over 23 years.
610010
Hedge funds can be a variety of things.  Simple diversification can be a hedge.  \n\nDow Jones Averages used to be a hedge.  If the Industrials were down, the surely the Transportations or Utilities (a couple of other, previously indispensible pieces) were up.  Similarly, Standard & Poors or the Fortune 500 list are diversifications to hedge against market downturns.  The S&P 500 is often listed by sector, sorted by similar types of businesses.  This way you can identify, say, just banks, or just airlines.  Right now, if you put money just into their banks and none in the airlines, your portfolio would perform better than the average investor.  Right now oil is making profits by the barrel but losing stock value.  Right now, car companies are losing money and they are also declining in value, so mixing and matching gets complicated.  Fully half of the stocks are up and the rest are down at any one given moment.  You may lose some money on some, but won't on all.\n\nThat is the hedging thing.  If I think domestic car sales will go down, I can go short on GM & Ford while going long on Toyota and Honda.  I can buy short term wheat and sell long term corn.  There are a variety of mixes that are the financial equivalent of getting sweet and sour pork at a Chinese restaurant.  It is using the markets to have your foot on the gas and the other on the brake.  It doesn't sound very smart, and sometimes is downright stupid, some hedge funds have lost lots and lots of money.  Our government wants only very well "qualified" people to participate, as in they have loads of money to lose.  Yet, just as some can lose big time (what if both GM AND Honda go down?, what if both wheat AND corn go down?), they can also win in really big ways.\n\nIt doesn't have to be short-sales and derivatives like options and futures contracts, but it can.  It could also simply be that with summer fewer people will buy coffee and more will buy coca cola, so I reposition my speculations/investments according to the opportunities.