@Guru267 Hope you have managed to achieve most if not all the targets so far.

Your observations about hedge fund managers doing considerably well are correct but there are a few things that need clarification.

1. The environment in Kenya is not yet conducive for hedge funds. Most hedge funds are domiciled in tax havens and I think that Mauritius is the nearest tax haven. Although unregulated in most countries, I doubt that you can operate any kind of fund in Kenya that will not be subject to regulation.

2. Hedge funds should only be open to sophisticated (qualified) investors. This means that the investors must understand the risk that a hedge fund exposes them to. A qualified investor is one who can stomach 100% loss of his investment.

3. A hedge fund is not your run of the mill investment fund. Other than investing in sometimes complex investments (the hedging part), you would have to demonstrate expertise in other techniques. Some managers buy distressed securities only while some are contrarian. Some specialize in short trading only. Currently, the types of investment options available in Kenya are limited meaning that you would have to choose from a small pool.

4. Leverage trading, many hedge funds maintain margin accounts with their bankers meaning that at times they trade on credit. When this is the case, risk management is king.

5. Should your hedge fund attract investments from investors in other countries and especially the U.S , there are certain conditions that you would need to fulfill especially with regard to taxation.

I worked in the industry in 2005 - 2007 so I can share a secret or two

A typical hedge fund manager profile http://www.bloomberg.com...protege-dies-at-49.html


CBM Capital was one of my clients

It depends on what type of investments you want to be running in the hedge fund because the financial instruments industry is vast. Not all hedge funds participate in the same type of investments; they all have their niche.

For now, judging by your post, it seems that you are good at what you're doing and the track record should act as proof that you know what you're doing and is simply not guess work. You can take a look at https://twitter.com/arluka_ent to check out a type of investments company in Kenya.

Hope it helps.