I have never started or tried to start a hedge fund. This article is based on interviews with readers, students, and other contacts who started their own funds.

Hello Brian, as I am in thinking in starting up a fund house.

I would like to know more about your experience as it will be helpful and inspiring for my new venture.

Please, feel free to email me and we can discuss about

I’m not sure I understand your question. If your investment strategy is that good, though, I don’t know why you’d write a book about it. Go raise capital and make even more rather than sharing your secrets.

I want to start hedge/ mutual fund.
I have novel investment idea that makes 35% in up , down, flat markets. My book is forthcoming.
I expect people to commit millions at least to my management.
I do not want any help in management but need everything else. I manage many millions of my own money
but want to add much more. I want to do everything legally. I am not a bernie madly or ponzi.
ken fisher has 225 Billion under management. his 10 year record is 8.5 %. Why should not they all switch

Thanks for adding that. This article is meant to dissuade people who think they can start their own hedge fund because they did well managing their $100K personal accounts or got a 400% return during covid or something like that.

If you actually have real experience working at a larger fund, a real track record based on a large capital base, and institutional connections, sure, starting a hedge fund can work out well for you.

That said, even if you perform well, it’s still quite different from simply working at a large fund because you’re also managing a business and all the people/responsibilities that come with it. I’ve never heard someone say that starting their own fund was comparable to staying at a larger fund in terms of stress/hours. But sure, each situation is different, so maybe this has been true for you.

It is definitely not for everyone, but for anyone reading this article, don’t be overly deterred by what’s written here. Do your research. It could turn out to be a good option for you just as easily as not.

Yes, well, the point is that there is a massive difference in strategies based on your capital. A strategy that works for trading $10K will not work at the institutional level when trading $100 million or more. Something like turning $10K into $18M is amazing for an individual, but most LPs would question the result or at least question whether it can be replicated at a greater scale. Quant funds do have to disclose something about their strategies if they have outside investors.

Good luck!