tailieunhanh - Starting a Forex Fund

Hedge funds rely on the economies of scale available through third-party providers all the time. They don’t borrow stock directly; they leverage the scale of their prime broker. They don’t issue commercial paper directly to finance long positions; they leverage the banks. Similar opportunities exist across a wide range of fund activities, from trading and technology, to human resource support, to risk manage- ment and reporting. By moving the burden of high-expense activities from their own P&L to a service provider, hedge funds can reduce their fixed expenses. The resulting model is leaner and more effective, and it can be scaled. | Starting a Forex Fund By Hannah M. Terhune Esquire 2008 Capital Management Services Group Market conditions have never been better for setting up a forex fund. The number of forex funds and corresponding investors has grown as a result of expanding customer markets. Therefore traders interested in starting a forex fund or managing customer accounts should familiarize themselves with the legal landscape as they consider earning a living in this profitable retail industry. An experienced and disciplined forex fund manager can earn a substantial income. Most forex funds to which we provide services are small. We often encounter people who have been trading accounts for others under the table and now want to formalize their arrangements. One key advantage to starting a forex fund is that the fund manager can legally accept compensation for his or her trading and advisory services. In many cases the fund manager can legally advertise their services as well. This compensation can provide an excellent supplement to an existing income or it may allow trader to work as a paid forex adviser on a full-time basis. In our experience many forex new fund managers also keep their day jobs for a while until they are certain this is the business they want to be in. Market conditions have never been better for setting up a forex fund. Whether you want to set up a fund or just invest in one it is a good idea to understand the basics. Is Running a Fund Profitable Forex fund managers typically demand management fees of 1 to 2 of assets under management AUM as well as performance fees of 20 of net gains a year. This income can be substantial. If you had a mere 2 million AUM and a 1 management fee and a 20 performance fee you would have management fee income of 140 000 2 million x 1 and assuming fund performance of 30 performance fee income of 120 000 2 million AUM x 30 performance 600 000 x 20 . If you had 5 million under management you would have combined fee income of 350 000. If you .