Lord-Barrington
Distinguished Member
- Joined
- Sep 20, 2010
- Messages
- 2,801
- Reaction score
- 98
You had several strikes against you from the beginning, I imagine, but the biggest problem is that hedge funds are cold as ice right now. Big funds have been absolutely savaged and people are wary of these investment vehicles (and rightfully so, in my opinion).
streak is now at 14, total yield at 15.3%
Things are starting to get rough though, business-wise. It's gonna take at least 20,000 to get legally organized as a hedge fund, and then we have to hire independent administrators, compliance consultants, and accountants.
We've been talking to a bunch of Fund of Funds and Seeder Funds and while I do think it's possible for us to go that route at some point, having no infrastructure is a definite mark against us as far as these places are concerned. So now we have to do another round of small/mid dollar fundraising to secure our start-up costs, so that we can raise large-dollar investors for actual AUM.
Starting a business is hard! In retrospect I was definitely a bit naive about how easy this would be, due to the positive feedback we were getting and the big game a lot of people were talking who all ended up flaking out. Still, I think we're capable of it and that we want to go the start-up route. We're gonna keep slogging through until we get all our legal and organizational ducks in a row, and then hopefully we'll get that crucial anchor investor!
I'm just realizing that this is going to be slower and harder than I thought. I feel a little stupid and gullible in retrospect, but we're as determined as ever to make this happen. Hopefully someday in the not-too-distant future all you high net worth SFers will be able to invest with Acale Capital Management's flagship hedge fund.
You had several strikes against you from the beginning, I imagine, but the biggest problem is that hedge funds are cold as ice right now. Big funds have been absolutely savaged and people are wary of these investment vehicles (and rightfully so, in my opinion).