I am considering setting up a prop-trading company with $200k of my own capital to raise assets of around $1-2m from investors, giving me around 40% of shares and profits of the company. My impression is that everyone is dreaming of creating a hedge fund whereas, for small capital and the expected rate of return of at least 100% per year, it makes much more sense to create a prop-trading firm rather than go for 2/20% model in a fund structure. 2/20% only makes sense for amounts $10m+ which, for me, is unrealistic to raise. The reasons are as follows: - full control of capital - no redemptions at the worst time from the investors and huge potential for compounding - ability not to care that much about drawdowns in order to achieve those high returns - no daily/monthly reporting - no calls/pressure from investors - no regulation and lower admin costs. Disadvantages are: - corporate tax paid as the profits arise (a fund would be tax-exempt) - lack of ability to raise more capital while maintaining the 40% share in profit (dilution of capital) Would such a setup appear as a viable business to you?