Start a hedge fund? could I?

Question

Hello i went to indiana unversity undergrad in finance gpa of 3.7 gmat scores of 710.. my average annual return for the past 10 years was 48.9%.. I do not have an MBA yet do you think i could get into wharton?? or something and also how do those harvard grads raise 6 billion to start a hedge fund??? i only have 1.5 million in my own money that i will use will this be enough?? i heard that you need 200 million min.. is this true??? thank you

Answer 1

If you have a 49% average annual return over a 10 year period, you should be able to raise some good money.  Check out the Managed Funds Association website (managedfunds.org).  You should try and attend a couple of their conferences, as you will run into lots of money raisers and experienced traders in the business.  

Don't worry too much about getting your MBA.  If you can trade successfully, that is all investors care about when placing their money with you.  The Harvard grads are not raising $6 billion right out of business school.  However, traders working the desks at Goldman Sachs or an existing successful hedge fund will have no trouble raising big money if they have a good track record.  So, you might want to consider working as a trader at one of those firms for a few years.  

Good luck!

Scott Cole

www.kungfutrader.com

Answer 2

Go to your library and check out Jim Cramer's "Confessions of a Street Addict" to see how it is done in the beginning