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Starting a Hedge Fund

 

Pension funds move hedging products mainstream as markets overheat

View Original Article Mon, 30 Mar 2015 04:32:18 -0700
By Simon Jessop and Nishant Kumar LONDON (Reuters) - Pension schemes are changing their attitudes to hedge funds, bringing some into their mainstream equity portfolios in order to access products that ...

Swiss Investor Calls for Big Cut in Hedge Fund Fees

View Original Article Mon, 30 Mar 2015 09:24:00 -0700
One of Europe's biggest hedge fund investors, Unigestion, is pushing hedge funds to scrap management fees in place of a bigger slice of profits as investors attempt to crack down on high charges.

Hedge funds hot "appraisal" strategy for deals may become a lot less appealing

View Original Article Thu, 19 Mar 2015 03:22:21 -0700
The strategy usually involves buying stock in a Delaware-incorporated company that is being acquired and then filing a claim that gets a judge to determine the fair price for the shares in a process known as appraisal. The lawyers? proposals have traditionally been approved with little oppositionby Delaware?s state legislature. Between 2004 and 2010 only about 5 percent of the deals in which ...

3 Stocks Rising on Big Volume Into Breakout Territory

View Original Article Mon, 30 Mar 2015 12:49:40 -0700
DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility. Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by ...

4 Stocks Spiking on Unusual Volume

View Original Article Mon, 30 Mar 2015 11:35:09 -0700
DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility. Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by ...

 

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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:

 








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