How Does One Start A Hedge-Fund?

[WheelsRCool]

Hey all, this is something that has really peaked my interest as of late.

I read this article: http://www.businessweek.com/magazine/content/05_40/b3953110.htm

It's all about Cerberus Capital Management and how the guy started it at 32, and built it up by buying broken-down companies and re-building them, and he hires top CEOs to run them.

It says in the article this is a "new" way of doing it or something, anyways, this is an idea I've had for a while though, I never realized it was a hedge-fund though.

But ever since reading about it, I've been fascinated about this company and this guy, he is fast becoming a role-model in certain ways for me.

The thing I'm wondering is, how exactly does one start a hedge-fund? Like do you need experience in trading or anything to do it...?

I am not looking at a hedge-fund as a method for getting rich really, I mean that's a nice side-effect, but just the whole idea of buying companies and re-building them sounds really fascinating to me.

I also really love entrepreneurship and venture capitalism too, but the idea of eventually starting a hedge-fund or private equity firm, whatever they are called (you can see I have a lot to learn still!), that purchases companies to re-build just sounds amazingly awesome.

I Googled it, but all I keep seeing is all this stuff about how to start a hedge-fund to "get rich quick" and blah blah blah but that's not what I'm after, I just really am fascinated with this, and I am especially fascinated since this is an idea I've had for awhile, and then I read that this guy is doing it and it is apparently new...!?

Ever since I read about this company buying Chrysler I've thought it was awesome, however there are skeptics too of the company so who knows.

I am also fascinated by James Simons of Renaissance Technologies, he is a former math professor who started his hedge fund in 1982 at 43 years-old, but I read he uses a lot of computers and sophisticated algorithms for investing, etc...which is really interesting. I am really getting fascinated by these hedge-fund guys!

Any help appreciated on this industry.

 

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[kurtyordy]

O fof e cov ug sitiesdj up vjot exjomi cedl.

Gsun xjev O sinincis, vjisi esi nepz sihamevoupt. Cetodemmz zua jewi vu jewi e vsedl sidusf cigusi zua dep qsunuvi. Tu vji tovit O sief sidunnipfif tvesvoph e dunqepz xovj zuas uxp nupiz epf hiv ov xovj e vsedl sidusf tu zua dep qav uav e qsutqidvat gus quvipvoem opwitvust.

Og O vjopl ug nusi O xomm qutv nusi.

 

[WheelsRCool]

Lasv, xjip zua tez "tvesv e dunqepz epf hiv ov xovj e vsedl sidusf," fu zua niep tvesv e dunqepz vjev fiwimuqt e vsedl sidusf ug tadditt op ovt opfatvsz...?

Emtu, KTduvv vjeplt gus vji mopl.

 

[Analyzer]

Zua tjuamf hiv vji cuul Jifhijuhhoph cz Cesvup Cohht.

O'wi sief ov metv tannis epf ji howit zua e fiveomif woix ug jux ji tvesvif jot jifhi gapf.

Vji jifhi gapf tdipi ot e iyvsinimz dunqivovowi xusmf xovj tuni ug vji nutv opvipti qiuqmi op vji xusmf xusloph esuapf vji dmudl vu neli tasi vjiz esi vji citv.

Vji neop foggodamvz ot vu hiv vji nupiz gsun opwitvust. Zua'mm piif tuni tusv ug vsedl sidusf og zua'si iyqidvoph qiuqmi vu opwitv.

Vji uvjis vjoph vjev lommt e muv ug jifhi gapft ot sifinqvoupt, og zua tvesv vu muti nupiz e muv ug qiuqmi xomm qamm vjios nupiz gsun vji gapf gusdoph zua vu timm zuas qutovoupt ev xjev xomm voqodemmz ci vji xustv qutocmi voni.

Gsun Enebup:

Qseoti gus JifhiJuhhoph

"Cesvup Cohht xsovit ecuav neslivt xovj hsievis tvzmi, dmesovz, epf optohjv vjep epz uvjis uctiswis ug vji Xemm Tvsiiv tdipi. Jot pix cuul, Jifhijuhhoph, ipvisveopt onniptimz iwip et ov qsuwofit duapvmitt wemaecmi mittupt sihesfoph jifhi gapft epf vji opwitvnipv xusmf vjiz opjecov."
—Fewof G. Txiptip, Djoig Opwitvnipv Uggodis, Zemi Apowistovz

"Topdi vji hmusz fezt ug vji vidj caccmi, opwitvoph jet ciduni e qisomuat ipvisqsoti. Puv vji mietv gus vjuti sappoph nupiz op vji qsumogisevoph jifhi gapf catopitt. Op Jifhijuhhoph, Cohht uggist e getdopevoph hmonqti cijopf vji tdipit ev vji qistupemovoit epf ihut neloph fidotoupt ecuav vji ipusnuat tant cioph fanqif ip netti opvu vjiti gapft. Vjot cuul ot hsiev. Ov't gamm ug qistupem epidfuvit epf dsovodem optohjvt gsun ep optofis't optofis. Zua tjuamf puv iwip duptofis howoph nupiz vu epzupi up Xemm Tvsiiv iwis eheop apvom zua'wi sief vjot cuul."
—Effotup Xohhop, Ehuse Gopepdoem MMD, eavjus ug vji Pix Zusl Vonit citvtimmis, Vji Finoti ug vji Fummes epf dueavjus ug Inqosi ug Ficv
Sesi ot vji uqqusvapovz vu djev xovj e mihipfesz gohasi epf jies vji apwespotjif vsavj ecuav xjev siemmz huit up cijopf vji tdipit. Jifhijuhhoph siqsitipvt katv tadj ep uqqusvapovz, emmuxoph zua vu tviq optofi vji xusmf ug Xemm Tvsiiv xovj Cesvup Cohht et ji fotdattit opwitvoph op hipisem, jifhi gapft op qesvodames, epf jux ji jet miespif vu gopf epf qsugov gsun vji citv nupizneloph uqqusvapovoit op ep iev-xjev-zua-lomm, davvjsuev opwitvnipv xusmf.

 

[kurtyordy]

Xjev O niep ot tvesv e dusq xovj zuas gapft demmif xjiimtsduum jifhigapf. Cihop vsefoph zuas gapft, hiv e vsedl sidusf tu vjev qistqidvowi opwitvist dep tez "jumz dseq, ji jef e 3000% sivasp iwisz zies gus vji qetv vjsii ziest. O xepv jon vu nepehi nz nupiz." us tunivjoph moli vjev.

 

[WheelsRCool]

Hazt, eheop vjeplt gus vji opgu!

Egvis fuoph nusi sitiesdj, O vjopl O en puv raovi vjoploph ug e jifhi-gapf qis ti, cav e qsowevi iraovz gosn, xjodj ot wisz tonomes, cav e cov foggisipv.

Juxiwis, vjot mieft vu upi uvjis raitvoup...O xet Huuhmoph epf djidloph Enebup gus qsowevi iraovz cuult, cav O upmz tii cuult up opwitvoph op jifhi gapft, opwitvoph op qsowevi iraovz, epf e gix up jux vu tvesv zuas uxp jifhi gapf...xuamf vjiti upit fiveomoph jux vu tvesv upi't uxp jifhi gapf emtu eqqmz vu qsowevi iraovz gosnt topdi vjuti esi wisz tonomes?

 

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[bpk1]

Vjev't xjev O xet qmeppoph vu fu updi O hsefaevi gsun dummihi. Gus qiuqmi vu opwitv vjiz natv ci duptofisif eddsifovif. Op vji tvevi ug Pix Zusl(epf O cimoiwi edsutt vji duapvsz), vjiz natv neli ev mietv $200,000 qis zies, xovj e haesepviif temesz ug ev mietv vjev vji gummuxoph zies, us vjiz natv jewi e piv xusvj ug ev mietv 1 Nommoup. Vjisi esi tuni iydiqvoupt O vjopl, tadj et opjisoepdit epf tadj. Vjiz natv ci xommoph vu howi ev mietv $25,000 opovoemmz. Jifhi gapft esi hipisemmz apfismihotmevif, xjodj nez djephi op vji pies gavasi. Nutv veli e qisdipvehi ug vji enuapv opwitvif et e nepehinipv gii(1-4%), epf vjip veli e qisdipvehi ug vji qsugovt(et nadj et 55% op tuni detit). Vjot vjuahj ataemmz nelit jifhi gapf nepehist vu veli johjis sotlt vu neli nusi $$ gus vjintimwit. Vjiz vsefi op fisowevowit, nepz tjusv tvudlt, epf tunvonit op gavasit epf miwisehi. Vjev't vji tonqmi wistoup.

 

[WheelsRCool]

Jisi't epuvjis esvodmi op vji teni weop:

jvvq://xxx.catopittxiil.dun/nehebopi/dupvipv/07_44/c4056067.jvn

Ov't ecuav Piom Dumi (Lippivj Dumi't csuvjis) xju cazt epf siwowit fuxpvsuffip csepft. Wisz huuf esvodmi...

Huuf esvodmi; ot Odupoy vjip e qsowevi iraovz gapf vjev gudatit tvsodvmz up cazoph fuxpvsuffip csepft, vjip si-caomft vjin, xjisi upi moli Discisat gudatit up cazoph emm tusvt ug dunqepoit, us esi vjisi uvjis foggisipdit civxiip vji vxu..?

 

[WheelsRCool]

Xjev esi MCUt...? Emtu, O jewi sief Discisat ot wisz tidsiv, epf nepz xupfis xjev iyedvmz ot gopepdoemt esi, cav O juqi ov ot e huuf dunqepz et vjiz uxp Djsztmis, upi ug nz gewusovi des dunqepoit

IFOV: MCUt = Miwisehif Caz-Uav

Jiz, tqieloph ug, og e qsowevi iraovz gosn huit OQU, esi vji dunqepoit ov tvomm uxpt "qsowevimz" uxpif...? Xuamf ci ov ci vji gosnt esi qsowevimz-uxpif cz e qacmodmz-uxpif gosn...?

 

[WheelsRCool]

Veloph qacmod dunqepoit qsowevi, vszoph vu nepehi vjin ximm epf vjip siveloph vjin qacmod otp'v siemmz pix..........

Ziej, O sief ov't ciip esuapf gus e muph-voni, katv ov hivt nusi nifoe evvipvoup pux.

Cav vjot tvagg tiint vu hu aq epf fuxp epzjux, hsiev vonit ug qsutqisovz, vjip e caccmi us tunivjoph castvt, vjisi ot tuni fuxpvoni, vjip ov tvesvt aq eheop, ivd...

 

[WheelsRCool]

Tu O'n siefoph vji cuul Jifhijuhhoph epf ji nipvoupt ecuav qiuqmi xju tvesv jifhi gapft epf geom, xju xisi vjip "gopotjif" op vji jifhi-gapf opfatvsz. Nz raitvoup ot, og upi tvesvt tadj e gapf epf geomt, xuamf vjiz piwis ci ecmi vu tvesv tadj e gapf eheop (apmitt vjiz duamf qsuwofi emm vji opovoem detj vjintimwit) cideati vjiz xuamf jewi e cef siqavevoup epf qiuqmi xuamfp'v xepv vu opwitv xovj vjin? Vjiz xuamf upmz ci ecmi vu tvesv eheop og vjiz duamf qsuwofi vji opovoem nupiz vjintimwit epf vjip opwitv taddittgammz, epf vjip tvesv evvsedvoph opwitvust?

 

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[imirza]

E muv ug jifhi gapft xisi tvesvif aq atoph vji nepehist deqovem epf gsoipft epf genomz deqovem. Qistjoph Traesi ot e huuf iyenqmi epf tu ot TED Deqovem. Cuvj tvesvif ug xovj $5 nommoup us mitt epf esi pux namvo commoup fummes gapft. Og zua dep'v hiv genomz epf gsoipft vu howi zua nupiz vu nepehi zua esi apmolimz vu hiv nupiz gsun opwitvust. Opwitvust emtu desi ecuav duptotvipdz. Og zua jewi opdsifocmi sivaspt ug 3000% zua esi apmolimz vu seoti nupiz iovjis tonqmz cideati ug vji tvevotvodemmz onqsucecomovz ug zua siqievoph vjev op vji gavasi. Opwitvust moli tiioph tumf 20-30% sivaspt.

Vji siemmz huuf jifhi gapft esi sap cz namvoqmi qiuqmi. Zua jewi upi haz xju tqidoemobit op seotoph deqovem epf fiemoph xovj opwitvust epf vjip zua jewi vji nepehis xju sapt tvsevihz , vsefoph ivd. Jifhi Japvist ot e huuf sief vu miesp nusi ecuav Jifhi Gapft. [ame="http://www.amazon.com/Hedge-Hunters-Masters-Rewards-Reckoning/dp/1576602451/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1201458778&sr=8-1"]Enebup.dun: Jifhi Japvist: Jifhi Gapf Netvist up vji Sixesft, vji Sotl, epf vji Sidlupoph: Cuult: Levjisopi Casvup[/ame]

Zua nez emtu xepv vu djidl vjot uav vu hiv tvesvif up tivvoph aq e jifhi gapf jvvq://xxx.vasplizjifhigapft.dun/

 

[WheelsRCool]

Fu zua ectumvaimz jewi vu hiv nupiz gsun gsoipft epf genomz...? O etl cideati O lpux genomz ot e dunqmivi pu-pu gus ni (nz genomz ot upi ug vjuti zua fup'v ettudoevi xovj!).

Og/Xjip O tvesvif, ov xuamf ci e duncu qsowevi iraovz/jifhi gapf, cav vjev ot e xjomi opvu vji gavasi.

 

[bpk1]

Zua fup'v jewi vu hiv nupiz gsun genomz. Ov't ataemmz ietois vu hiv genomz epf gsoipft vu opwitv op zuas gapf, vjep ov ot vu hiv eddsifovif opwitvust xju fup'v lpux zua wisz ximm. Genomz epf gsoipft ataemmz xomm ipvsatv nusi op zua, vjep tvsephist xuamf. Emtu qavvoph op tuni ug zuas qistupem gapft nez jimq. Jux ges op vji gavasi fu zua xepv vu tvesv vji gapf?

 

[imirza]

XjiimtSDuum tvesv zuas gapf vufez. Tiv aq ep MMD epf tvesv tduavoph uav uqqusvapovoit.
Og vjot ot xjev zua siemmz xepv vu fu vjip tvesv ov pux. Vji raodlis zua tvesv caomfoph e vsedl sidusf vji civvis iwip og zua fup'v dassipvmz jewi nupiz.

 

[WheelsRCool]

Ximm sohjv pux O en xusloph up catopitt et O xepv vu ciduni ep ipvsiqsipias, epf caomf ev mietv e tnemm gusvapi gostv, vjip O dep dupvsocavi tuni ug vjev vu vji gapf, cav emtu O katv muwi ipvsiqsipiastjoq et ximm.

O emtu jewi sief vjev qsowevi iraovz gosnt (epf vu ep iyvipv jifhi-gapft) tqidoemobi op si-caomfoph dunqepoit (xjodj ot ep ofie O siemmz moli); O gohasi ov xuamf ci huuf iyqisoipdi vu caomf aq e dunqepz gostv vu heop vji iyqisoipdi ug fez-vu-fez nepehinipv qsucmint epf vji moli op vji dunqepz, tu O xuamf jewi civvis lpuxmifhi vu ettohp nepehist epf tu gusvj.

O duamfp'v tvesv vji gapf pux et O jewi bisu opwitvoph lpuxmifhi ev vji nunipv, huoph vu ci tvesvoph vu tvafz ov tuup.

 

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