What is in a name?
The paperwork issue will start to be taken care of in a couple of posts, but for now I want to give the management(hedge fund) company a name the will oversee the money in the fund. The name should say who we are and how we do what we do, which is make sick amounts of money. This product will be sold to Wall Street investors and/or their Advisers or Pension Plans for a minimum of $1,000,000 USD, because anything smaller and no one will take you serious.
The type of investment strategy will be macro going long or short any investment or speculation product, anywhere in the world that has sufficient liquidity when taking profits. We are aiming to make money in any market condition.
Characteristics
1) A concise name
2) Strikes fear in the heart of other funds
3) Simple yet sophisticated
4) Solid
5) Easy to remember
6) Possible something the ultra wealthy can relate to
7) Not too risky
Names that I have come up with
Sunseeker Capital Management, LLC
Goomberg
Caesium
Pendulum
CORE Capital Management, LLC
Wedgier
Razor Capital Management, LLC
Hound
Hogg
Equestrian
Centred Partners
Magma Alpha Capital Management, LLC
Durham
Wildfire
Star ship
O'clock
One World
Prosperita
Accent
Pistol Capital Management, LLC
Rifle
Harmony
Super splash
Long Green Capital Management, LLC
Royal Flush
Valeo
Kings Court
Grand Mother
Mars
Pizza Guy
Send any suggestions for names you might have...
Sunday, April 22, 2007
Thursday, April 19, 2007
My quest to start a hedge fund and get stinking rich!!!
They say all you need is a computer
Plus the ability to make 20% profit a year to start a hedge fund. I have a computer and a sure as hell can make 20% a year! Next! I searched the internet for information on where to start and found a very good website www.greencompany.com/HedgeFunds/HedgeFundIncubatorFunds.shtml . They recommend starting with a incubator fund, as no one will begin to speak with you without at least a six month track record. Now lets run through the paper work:
Benefit from the flexibility of an Incubator Fund
Your life is easier during the Incubator process. Since you do not have investors in your Incubator phase, it's much easier to prepare your accounting and NAV reports. You do not need to deal with complex investor-level accounting issues. Annual tax preparation is also a snap; it's almost as easy as preparing tax returns for any trader entity. All this saves you money and reduces your work and time with our professionals. Since most complications arise when investors come into the fund, an Incubator Fund can save you many headaches while you are getting your fund’s business operations in order.
You have time to fine-tune your business plan with an Incubator Fund. When your incubator fund is successful and you are ready to meet with prospective investors, it's time to complete your hedge fund business plan and incorporate it all into your offering (disclosure) documents. With the time afforded you in the two-step process, you can benefit from hindsight and experience. Maybe you want to change brokers, take soft dollars (or skip them); change other operations like management team, systems and more. Since you can tweak your hedge fund business plan before preparing your offering documents, those documents will be more representative of your revised operations than if you created them on day one (without an incubator). Since these offering documents are the way you fulfill your disclosure obligations, from a legal and compliance point of view, the incubator approach provides added protection.
The Incubator can be valuable even if you decide not to complete the hedge fund. If the Incubator Fund is successful and can attract outside investors, you will probably decide to move forward with a hedge fund and management company. If, however, you decide not go ahead and complete the fund, you can still take advantage of the entities created in the Incubator phase, since they are designed to accommodate business trading as well as hedge fund trading. You can use one or both of these entities to gain important tax benefits, such as retirement and health insurance deductions. Business traders often need an entity to create “earned income” in order to deduct contributions to retirement and health insurance plans. Learn more about GreenTraderTax business entity tax strategies here and retirement plan strategies here. This built-in contingency plan helps ensure that you get the maximum value for every dollar spent with us.
The Incubator Fund allows you to start big or small.
Many traders ask about the amount of money they should start with in their Incubator Fund. The answer is that there is no minimum investment, though you probably will want to start with at least $25,000, which is the minimum required to establish a pattern day trader account at a direct-access broker. To attract serious outside investors, you will want to consider trading $100,000 to $1,000,000 or more.
Some restrictions with an Incubator Fund
Under federal and state laws you are not allowed to accept compensation (in any form or kind) from investors, including yourself, during the incubation period. Nor can you accept funds from outside investors, except (in limited cases) from family and close friends. Since you are subject to fiduciary duty rules even with non-paying investors (which means that you can be sued for losing their money), you should consult with an attorney before accepting other people's money into your Incubator Fund.
The Bottom line
Starting your own hedge fund business can be your ticket to financial and business freedom. However, it is a reality that most new businesses, including hedge funds, fail in their first year of operations. So as you start your fund, plan wisely. If you decide on a low-cost, low-risk vehicle for getting your fund off to a solid start, talk to us about an Incubator Fund.
Ready for help?
If you have any questions or would like to get started, please email info@greencompany.com and/or call us.
Consider a 30 minute consultation with Robert Green, CPA to discuss incubator fund strategies.
Shoe string budget!
Will I be using green and company? I wish sorry don't have the cash on hand. We are going on a shoe string bugdet.
Plus the ability to make 20% profit a year to start a hedge fund. I have a computer and a sure as hell can make 20% a year! Next! I searched the internet for information on where to start and found a very good website www.greencompany.com/HedgeFunds/HedgeFundIncubatorFunds.shtml . They recommend starting with a incubator fund, as no one will begin to speak with you without at least a six month track record. Now lets run through the paper work:
Benefit from the flexibility of an Incubator Fund
Your life is easier during the Incubator process. Since you do not have investors in your Incubator phase, it's much easier to prepare your accounting and NAV reports. You do not need to deal with complex investor-level accounting issues. Annual tax preparation is also a snap; it's almost as easy as preparing tax returns for any trader entity. All this saves you money and reduces your work and time with our professionals. Since most complications arise when investors come into the fund, an Incubator Fund can save you many headaches while you are getting your fund’s business operations in order.
You have time to fine-tune your business plan with an Incubator Fund. When your incubator fund is successful and you are ready to meet with prospective investors, it's time to complete your hedge fund business plan and incorporate it all into your offering (disclosure) documents. With the time afforded you in the two-step process, you can benefit from hindsight and experience. Maybe you want to change brokers, take soft dollars (or skip them); change other operations like management team, systems and more. Since you can tweak your hedge fund business plan before preparing your offering documents, those documents will be more representative of your revised operations than if you created them on day one (without an incubator). Since these offering documents are the way you fulfill your disclosure obligations, from a legal and compliance point of view, the incubator approach provides added protection.
The Incubator can be valuable even if you decide not to complete the hedge fund. If the Incubator Fund is successful and can attract outside investors, you will probably decide to move forward with a hedge fund and management company. If, however, you decide not go ahead and complete the fund, you can still take advantage of the entities created in the Incubator phase, since they are designed to accommodate business trading as well as hedge fund trading. You can use one or both of these entities to gain important tax benefits, such as retirement and health insurance deductions. Business traders often need an entity to create “earned income” in order to deduct contributions to retirement and health insurance plans. Learn more about GreenTraderTax business entity tax strategies here and retirement plan strategies here. This built-in contingency plan helps ensure that you get the maximum value for every dollar spent with us.
The Incubator Fund allows you to start big or small.
Many traders ask about the amount of money they should start with in their Incubator Fund. The answer is that there is no minimum investment, though you probably will want to start with at least $25,000, which is the minimum required to establish a pattern day trader account at a direct-access broker. To attract serious outside investors, you will want to consider trading $100,000 to $1,000,000 or more.
Some restrictions with an Incubator Fund
Under federal and state laws you are not allowed to accept compensation (in any form or kind) from investors, including yourself, during the incubation period. Nor can you accept funds from outside investors, except (in limited cases) from family and close friends. Since you are subject to fiduciary duty rules even with non-paying investors (which means that you can be sued for losing their money), you should consult with an attorney before accepting other people's money into your Incubator Fund.
The Bottom line
Starting your own hedge fund business can be your ticket to financial and business freedom. However, it is a reality that most new businesses, including hedge funds, fail in their first year of operations. So as you start your fund, plan wisely. If you decide on a low-cost, low-risk vehicle for getting your fund off to a solid start, talk to us about an Incubator Fund.
Ready for help?
If you have any questions or would like to get started, please email info@greencompany.com and/or call us.
Consider a 30 minute consultation with Robert Green, CPA to discuss incubator fund strategies.
Shoe string budget!
Will I be using green and company? I wish sorry don't have the cash on hand. We are going on a shoe string bugdet.
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