Hmm, this is a concept new to me. Can you give more context? What does that mean, operating under the "umbrella of an existing fund"? And they will charge you 0.6% of AUM? In exchange for what?
@HFStartup... From what I've read so far you seem like a pretty decent guy. So do you and all your potential investors a favor. Gain some more of the ruthless instinct and tact you'll need to raise the kind of capital you're looking for. Not saying that you don't have any now because it obviously takes alot of guts to loose all you're money at this and comeback for some more. All I suggest is that you be ruthless about what you offer because you know you're doing the right thing. In comparison, there are a countless number of schucsters and hustlers that don't give two shits about what happens to their clients money a week from now, as long as they get their commissions.... Read up some more on sales tactics, how to make people like you, cold calling techniques etc... Some years back I did the boiler room type thing. I was never any good at unless I believed I was doing the right thing for the guy on the other end of the phone. When I was armed with that the rest was easy. As sales go there's nothing like finding a whale, making him lay down, and 45 mins. later you got him on his back flipping his fins begging to give you 100k to start. Just my two cents.
He should start to practice (preferably in front of a mirror) a professional speech to tell the HF customers about their losses!
You mentioned that prime brokers you approached are not interested in incubator funds such as yours. Actually, it's worse than that. The major players in the PB area are actively jettisoning established clients with even quite substantial AUMs and closing small individual accounts (like anything under $100 mio). Basically, they all want the billion dollar guys now. This development has given rise to PB outfits that specialize in smaller clients. Merlin Securities is one that comes to mind. Not completely sure but given their target market I would think that they would have some sort of fundraising program for their clients. Perhaps if/when you are ready it might be worth it for you to approach. Good luck.
No, I'm talking about operating your own (new) fund under the umbrella of an exisiting management company. 0.6% is for basically all costs: Accounting, transfer, domiciliation, auditing, legal, tax, regulatory fees.
Of course they are not interested, as they know incubator funds are a scam! You open 3 accounts with peanuts: one long, one short and one sideways. One of them will hit it big, they don't tell you about the other losing accounts. Customers were really rude when you told them about their losses, uh?
Yeah, and there's also a conspiracy that Einstein stole his work from his wife, so i'd be careful what you say too. As far as the quality of your post, it's far below ET's standard which is a bit impressive. Job well done! I expected you to actually contribute to this but instead you blabbed about how other people should run their life. Anyways, hope you make it over to some science board where you're opinion might be of some use.
While the big Prime brokers don't want to deal with the little funds directly, there are multiple middlemen known as "introducing brokers" that would love your business. You can have a PB account that clears through GS, BAC, Pension or many others with as little as 500k - 1mill AUM. PM me if you would like some contacts and I would be happy to introduce you to some. Best of luck with your fund.