FAIL (the browser should render some flash content, not this).



Starting a Hedge Fund


Sentiments and Allocation Plans for 2015 in the Hedge Fund Industry

View Original Article Wed, 04 Mar 2015 06:06:00 -0800
Hedge funds are a broad group of investment vehicles pursuing a wide variety of investment strategies.

Hedge funds fail to meet investor expectations

View Original Article Tue, 03 Mar 2015 01:25:40 -0800
Hedge funds are failing to live up to their investors' expectations. A survey from Deutsche Bank's Global Prime Finance unit, published on Tuesday, showed two-thirds of responding investors said hedge funds they invested in didn't produce the returns they had been targeting last year. Hedge funds overall delivered a return of less than 3% last year, according to data group Hedge Fund Research ...

A Look at Spektra Fund - One of the World's Top Performing Hedge Funds

View Original Article Wed, 04 Mar 2015 11:12:17 -0800
The Spektra Fund, LP is a deep value and special situation hedge fund that invests principally in North American equities according to its website.

Argentina, hedge funds far apart

View Original Article Tue, 03 Mar 2015 16:01:06 -0800
Argentina and the hedge funds it labels as vultures remain far apart in the ballet over bonds that again has put the country into default.

Argentina, hedge funds far apart as bond hearings restart

View Original Article Mon, 02 Mar 2015 16:19:22 -0800
Two months into a new year expected to bring progress, Argentina and the hedge funds it brands vultures are still far apart in a battle over bonds that has put the country back into default. The two sides are in New York district court Tuesday over whether the country can pay a certain class of creditors while it still does not pay off the hedge funds as ordered by federal Judge Thomas Griesa ...
















































Starting a Low Cost Hedge Fund





Our professional services begin with pre-launch consultation, document preparations check list, and basic information regarding federal and state rules & regulations affecting your particular fund development and operation.


Starting a low cost hedge fund in the U.S. is typically structured as a limited partnership formed in Delaware. Depending on which type of fund you choose will determine which set of regulations will apply when starting a hedge fund. Here are some examples of possible regulatory exemptions to which can be relied on when starting a hedge fund in the U.S.:

• Regulation D, Rule 506 of the Securities Act of 1933.

• Investment Company Act of 1940 Section 3(c)(1) or 3(c)(7).

• Title IV of the Dodd-Frank Act.

• JOBS Act, Title II which allows for general solicitation and advertising


Setup costs. If you set up a U.S. based hedge fund, your costs should range $15,000+/-. This includes preparing your offering documents, registering the LLC (I recommend Delaware) and having a qualified securities attorney review your offering documents. Any further out-of-pocket expenses are for marketing and travel to meet and greet your potential investors.


Calculate ongoing costs. This is where many start up funds fall short. Setting up is easy, maintaining is another story. You will need to consider hiring an administrator who will handle your accounting records, calculate your fees, and run due diligence on your potential investors. All this comes with a monthly cost which is charged to your fund. Administrator costs can range from $500 to $4,000 per month. You will also need an auditor. Technically, it is not a requirement but most, if not all investors demand it. Depending on the "name" of your auditor, yearly costs can be from $5,000 in upwards to $20,000 (Big 4). Again, charged to the fund.


Open your bank and brokerage accounts. It is not always necessary to have a prime broker in the early stages of a fund. They become way too expensive. Start with a basic cash account for subscriptions, expenses, distributions, etc. Then open a brokerage account.


Decide on a launch date. I have seen funds launch after a certain amount of seed capital is raised. I have also seen funds which launch as soon as the first subscription is approved. This all depends on your minimum investment amount and your trading strategy. It's best to consult with your hedge fund adviser on this one.


With a global network of third party service providers, we can introduce to you administrators, auditors, prime brokers, bankers and legal counsel who can work side-by-side with you assuring that you and your fund comply with state and federal tax rules and securities regulations. As a value added service, Frank Nagy Financial Services will also provide global venues of investment trade shows and how to utilize them in your effort to network among accredited and institutional investors.


Frank Nagy Financial Services will tailor your fund development accordingly:


• Hedge Fund Consultation

• Prepare Hedge Fund Private Placement Memorandum

• Prepare Hedge Fund Subscription Agreement (Qualified investors)

• Prepare Hedge Fund Purchaser Questionnaire

• Prepare Hedge Fund Purchaser Representative Questionnaire

• Fund Administrator Introductions

• Fund Attorney Introductions

• Fund Auditors Introductions

• Introduction to International Investment Trade Shows

• FREE list of over 4,000 Institutional investors

• Obtain Bloomberg ticker/submission



Contact us now for a
free initital telephone consultation:


Can't read the image? click here to refresh