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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (83370)	8/29/2000 11:22:10 AM
From: Richard Nehrboss	Read Replies (1) \| Respond to of 132070

Mike, Thanks for your quick response. You paint a much better picture for garage hedge funds. Do you have any resources for the legal requirements, etc? How is your partnership with your partners set up? Richard

To: Knighty Tin who wrote (83370)	8/29/2000 1:11:13 PM
From: XBrit	Read Replies (1) \| Respond to of 132070

Speaking of hedge funds... Do you think it's possible for a person with liquid net worth of $1.5 mil to benefit from hedge fund investing? I got interested in this question recently, and went to www.hedgefund.net to check it out. I filled out their "temporary membership" questionnaire, and discovered that the questionnaire is just a come-on for the real test (a phone interview). Got into the phone interview, and was told really quickly that they were not interested in talking to anybody with net worth under $5m. Does that strike you as a reasonable lower limit? I can imagine that if minimum investments are $1m, then you'd need at least $5m so that the $1m would be possible in a diversified portfolio.

To: Knighty Tin who wrote (83370)	8/30/2000 9:48:51 AM
From: GuyNixon	Read Replies (2) \| Respond to of 132070

>>>There, a 1% fee and 20% of the profits are standard. You have to get set up with some brokers who can funnel high net worth investors your way, and, of course, you have to send trading commissions their way to do this.<<< MB, I work for a mutual fund co. in the far east and your observation is right on target. Some of our funds are so small, they always get poor managers to run the money and merely mimick the index. We paid about 4.5% to brokers for initial rebate and 0.5% of the management fee for trailer. How much do hedge funds pay the brokers up fronts? And do the brokers also get a cut of the subsequent management fee? Hedge fund is unheard of from where I live.