Question by SamyB: Starting a Forex Hedge Fund (Structure)?
We are 2 partners looking to launch an Offshore Forex Fund for European and Latin American investors primarily.
We are would like to know how the structure needs to be set up since one of us is based in the US and the other in a European country.
So far we understand that the management company should be in an Island (Bahamas, Cayman…).
- Do we have to open an Advisor in the US and a Research in the European country, so we both can get paid by the main Management company?
- When opening an Advisor in the US, Do we have to be registered with the SEC?
Many thanks
Best answer:
Answer by spiritgide41 Most people do their homework. You haven’t.
IF you were in the remotest way capable of operating a hedge fund, you would already know the answers to these questions, and where to go to do what you needed to do.
Aiming high is a good thing, but learning which end of the gun points toward the target comes first.
And learn how to drive a nail before you start building your hedge-house.
Opalesque Adds 100 New Seats to Realtime Active Trader Chat, the Longest Running, Exclusive Trading Community of U.s. Traders and Hedge Funds
The Opalesque Active Trader forum offers a real time venue for active portfolio managers, professional traders and others to join in a community of their peers. This community discusses all aspects of the daily turn of events, including news alerts, technical levels, trade ideas, research and expertise collaboration etc.
Launched in 2001, over half of its members have been in the forum for over 5 years
The forum currently has over 150 active participants and is perhaps the longest running active forum in the business, having been active since 2001. It is unique as it has been built upon a “referral only” strategy, thus allowing it to grow over 7 years in a stable and organic environment. Interestingly, in what can be a very fickle marketplace, more than 50% of the members have been in the forum for over 5 years.
Opalesque makes 100 new seats available for this exclusive online community. Once the 100 seats have been taken, the forum will close again. Free one month trials are available at http://www.opalesque.com/index.php?act=chat and will be allotted on a first-come, first served basis.
Know it first
“When I need information on a stock quickly I always look in the Active Trader Forum first. When I need the edge, that’s where I go. The information flow and color rivals that of any high powered trading desk on the street,” says David C Nelson, CEO of DC Nelson Asset Mgmt. LLC.
In the words of the moderator, “this forum is not for everyone, but if you need to know why the market is moving, what moved it and why, we almost always know it first. That’s the power of community, and nowhere is the strength of community more powerful than in the markets”. “The community aspect also comes into play as traders need help catching up on all the Wall Street research that comes out intraday and overnight. We really help each other out”.
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The moderator of the Opalesque Active Trader Forum is a 15 year trading veteran, and has been instrumental in creating a flourishing community of professional traders who work together daily to beat the markets. The Forum also includes members who are regular contributors on Fox TV, CNBC and many other financial websites. The traders and portfolio managers in the forum run the gamut from independent traders to multibillion dollar funds.
“It consistently makes me money”
“I pay the forum the highest compliment – it consistently makes me money,” says Christopher Hurd from Hill Financial Group in Rowayton, CT. Robert B. Ladd, Managing Partner, Laddcap Value Advisors LLC adds: “Particularly in these times of enormous volatility, a professional resource like the Active Trader Forum pays for itself many times over.”
The Opalesque Active Trader Forum is a essential tool for any trader or manager who is active in the U.S. markets. The service runs 24 hours, but is active during the hours of 8am to 6pm. All members use their own (real) names to insure a fair playing ground. This is NOT a chat board like one might see on Yahoo.com’s finance page. This is a business community of market professionals centered around the U.S. Markets collaborating and communicating in real time.
Opalesque adds 100 new seats, complimentary one month trial on first-come basis
Opalesque, the world’s largest subscription-based publisher covering alternative investments, makes 100 new seats available for this exclusive online community. Once the 100 seats have been taken, the forum will close again. Free one month trials are available at http://www.opalesque.com/index.php?act=chat and will be allotted on a first-come, first served basis.
Business Opportunity: Create your own Trader Chat Forum with Opalesque
Opalesque offers accomplished traders with significant expertise on a particular market or trading style the opportunity to create new trading forums taking advantage of Opalesque’s global reach and its proven turn-key, proprietary software platform.
Examples of such new forums could be:
l Asia-focused trading forum
l Europe-focused trading forum
l Latin America- or emerging markets-focused trading forum
l Country-focused trading forums
l Forums focused on traded instruments: futures or options trading forums, Carbon etc.
l Forums focused technologies or sectors: green / clean tech trading etc.
l Quant trader forum – etc…
Please contact knab@opalesque.com if you feel you have the qualifications to moderate an active trader forum.
About Opalesque:
In 2003, with the publication of its daily Alternative Market Briefing, Opalesque successfully launched an information revolution in the hedge fund media space: “Opalesque changed the world by bringing transparency where there was opacity and by delivering an accurate professional reporting service.” – Nigel Blanchard, Culross. This hybrid financial news service, which combines proprietary industry news stories and filtered third party reports, has been credited by many industry insiders with delivering precise, accurate, and vital information to a notoriously guarded audience.
Each week, Opalesque publications are read by more than 500,000 industry professionals in over 130 countries. Opalesque is the only daily hedge fund publisher which is actually read by the elite managers themselves (http://www.opalesque.com/op_testimonials.html).
For more information, please go to http://www.opalesque.com
31 Mar 2011 Bloomberg IKOS is a quantitative, actively traded hedge fund We place 50 — 80 thousand orders a day We execute about 20-30 thousand of those as trades [You run a global quant fund. How does yours work, how is it different?] We develop a theory and then create models to test that theory. Then we actually test it in the marketplace and then see if it fits in the rest of the investment process before we implement it. There is global growth of hedge fund assets. The Dodd-Frank Act is taking away proprietary trading from the banks and putting it out to hedge funds. By volatility, absolute performance and drawdown hedge funds are attractive to investors. [Do you see demand for quant funds in general stronger or weaker post credit crisis?] There is more understanding and acceptance of quant funds in the institutional space. Particularly ones that have a very long track record and tremendous transparency and liquidity that we offer give people exactly the product profile that people need. [How do you manage risk? How do you prepare for a rare but potentially damaging event?] You have to prepare well in advance. That means risk management is part of your portfolio construction process. You diversify the asset classes that you are trading. You also diversify the time frames and the different models you are using in order to generate alpha. So risk management is not something you apply only outside the portfolio, the most important risk management processes take place … Video Rating: 0 / 5
Question by blue_prince_of_dallas: Can I hedge against falling interest rates in the US dollar by holding a forex position?
My CDs rates are falling because the Fed is depressing rates. That’s also sending the dollar down. Since our economy is slowing the Fed will probably drop rates more. I’m thinking that if I pick a country paying higher rates I should offset a lot of my loss in interest income. I probably won’t put a lot of money there, but at 100:1 rates forex accounts have a lot of leverage.
Is this a sound idea and if so, what currencies have good “carry trade” rates right now?
Best answer:
Answer by david_adl FX is tricky business, even for the experts. It requires day to day monitoring, and you will probably get killed by the transaction fees. From my understanding, if you’re not constantly exchanging, you will indeed be crushed by the combination of hidden and overt fees. Stick to what you can learn easily. FX is not for the slow mind or the busy individual.
Tokyo June 2nd, 2008 — Opalesque, the world’s largest subscription-based publisher covering the alternative investment industry, has launched the fifth issue of its acclaimed regional Roundtable scripts, the “Opalesque Japan Roundtable”.
The Opalesque Japan Roundtable will be closing the 2008 coverage of the Asian hedge fund centers after having covered New Zealand, Australia, Singapore and Hong Kong (see here for Roundtable Archive: http://www.opalesque.com/index.php?act=archiveRT
The Opalesque Japan Roundtable was sponsored by Nikko Citi Prime Finance and took place in their Tokyo office. Opalesque thanks Ed Rogers from Rogers Investment Advisors for helping to put the group together.
After a stellar performance in 2005, Japanese hedge funds were struggling in 2006 and 2007. Is 2008 the turn-around year? The good news is that endowments, sovereign wealth funds and large global hedge funds are coming back to Japan. What opportunities do they see? In this Roundtable script, you will learn:
* Background on Japan hedge fund performance and the state of the economy * Will macro (economy) or micro (corporate governance on company level) catalysts drive the markets going forward? * Why activist investors and activist hedge funds have been very beneficial for Japan * Will the Japanese version of the Basel II rules still prevent regional banks to rebuild their hedge fund allocations? * How do Japanese pension funds and insurance companies view and use hedge funds?
The participants of the Opalesque Japan Roundtable are:
1. Angus McKinnon, Senior Partner, Tozai Investment Advisory 2. Nobuki Yasuda, Director of Alternative Investment, Pension Fund Association 3. Goro Ohwada, CEO, Aino Investment Corporation 4. Kenichiro Nishi, CEO & CIO, Gaia Capital Management 5. Scott Callon, Partner/CEO, Ichigo Asset Management 6. Rory Kennedy, COO, United Managers Japan (UMJ) 7. Andrew Hill, Director, NikkoCiti 8. Koichi Shijima, Director, NikkoCiti 9. Atsko Nakajima, Director of Hedge Fund Investments, Ueda Yagi Securities Co. 10. Hideki Hashiguchi, Lead Representative, HSBC Global Fund Services 11. Toshihiko Nishida, Portfolio Manager, GCI 12. Isao Tomoyuki, Chief Investment Officer, Stats Investment Management 13. Rick Okuno, Rheos Capital Works
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The Opalesque Hong Kong Roundtable Script can be downloaded here: http://www.opalesque.com/index.php?act=static∧=RoundtableJAPAN
All other previously published Opalesque Roundtable Scripts (New Zealand (March 17th), Australia (March 25th), Singapore Roundtable (April 24th), Hong Kong (May 1st)) can be downloaded
Matthias Knab, Director of Opalesque Ltd, moderates the Opalesque Roundtables. Matthias Knab is an internationally recognized expert on hedge funds and alternatives and has frequently served as chairman of hedge fund conferences in New York, Tokyo, Shanghai, Hong Kong, Miami, Bahamas, Stockholm, Dubai etc. In addition, he has presented or moderated at hedge fund events in Sydney, Cape Town, Madrid, and Bombay, and lectured at numerous universities on the subjects of hedge funds and the state of the global alternative asset management industry.
About Opalesque:
Opalesque leads the finance media space for its in-depth and innovative products. Since February 2003, Opalesque is publishing Alternative Market Briefing, the premium news service on hedge funds and alternatives. The launch of these Briefings was a revolution in the hedge fund media space (“Opalesque changed the world by bringing transparency where there was opacity and by delivering an accurate professional reporting service.” - Nigel Blanchard, Culross) combining proprietary news with the “clipping service” approach of integrating third party news. Each week, Opalesque publications are read by more than 360,000 industry professionals in over 100 countries.
Opalesque is the only daily hedge fund publisher which is actually read by the elite managers themselves (http://www.opalesque.com/op_testimonials.html). For more information, About Opalesque publications:
Alternative Market Briefing:
A daily newsletter on the global hedge fund industry, highly praised for its completeness and timely delivery of the most important daily news for professionals dealing with hedge funds. Alternative Market Briefing offers both a quick overview and in-depth coverage. Subscribers can also access the industry’s largest news archive ( 26,000+ articles ) on hedge funds and related topics.
A SQUARE:
Opalesque A SQUARE = Alternative Alternatives is the first web publication, globally, that is dedicated exclusively to alternative investments. A SQUARE’s weekly selection feature unique investment oportunities that bear virtually no correlation to the main stream hedgefund strategies and/or distinguish themselves by virtue of their ‘lternative” motive – social, behavioural, natural resources, sustainable/environment related investing.
With its “research that reveals” approach, fast facts and investment oriented analysis, A SQUARE offers diversification and complementary ideas for: private, high net-worth and institutional investors, pension funds and endowments, portfolio and hedge funds managers.
Technical Research Briefing:
Delivers three times a week a global perspective/overview on all major markets, including Equity Indices, Fixed