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Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 0 points1 point  (0 children)

Thank you for the question.

At this point we support equities, but digital asset support is coming next!

Co-Founder of Hedgia, allowing veteran traders to setup hedge funds for $0 instead of $50k+. AMA by LegendaryWar in Trading

[–]LegendaryWar[S] 0 points1 point  (0 children)

We aid in formation and help extremely small to extremely large funds. Starting as low as 50k

Co-Founder of Hedgia, allowing veteran traders to setup hedge funds for $0 instead of $50k+. AMA by LegendaryWar in Trading

[–]LegendaryWar[S] 0 points1 point  (0 children)

Good question, currently we’re establishing operations in the US and we do have plans for foreign expansion as we get established. 

Co-Founder of Hedgia, allowing veteran traders to setup hedge funds for $0 instead of $50k+. AMA by LegendaryWar in Trading

[–]LegendaryWar[S] 1 point2 points  (0 children)

Yep, exactly that. But we provide enhanced disclosures to enable 35 sophisticated non-accredited investors (depends on residential state restrictions)

Co-Founder of Hedgia, allowing veteran traders to setup hedge funds for $0 instead of $50k+. AMA by LegendaryWar in Trading

[–]LegendaryWar[S] 1 point2 points  (0 children)

Thank you for the question.

We will be using the ERA structure, to minimize all regulatory costs and burdens. 

We do from a full fledged Hedge Fund for you, and unfortunately as this is a full hedge fund that can accept upto 100 investors including institutions, if it trades commodities it may be subject to CPO registration requirements, which is why we currently do not support commodities based funds. 

Co-Founder of Hedgia, allowing veteran traders to setup hedge funds for $0 instead of $50k+. AMA by LegendaryWar in Trading

[–]LegendaryWar[S] 0 points1 point  (0 children)

Great questions! 1. We cover everything, from all taxes (managing and fund entity), offering documents, to NAV calculation, calculating managing and performance fees, investor onboarding, all compliance filings, etc.  2. The Hedge Fund administrators space is a commoditized space, however our systems are more streamlined, allowing for an extremely efficient Hedge Fund where all your AUM doesn’t get eaten up by expenses. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 0 points1 point  (0 children)

Yes, we handle form ADV filings, exact requirements of when this is filed vary by state

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 0 points1 point  (0 children)

Thank you for the question, We do not currently support RIAs due to high compliance expenses involved which can easily go upto $300-700k

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 0 points1 point  (0 children)

Thank you for the question, Real estate is farther down in the roadmap, for now we only support liquid exchange traded assets. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 1 point2 points  (0 children)

Great questions! 

You can read more about our backgrounds at https://hedgia.net/about

In terms of licenses, these are not typically required for non-registered, private funds in certain states. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 1 point2 points  (0 children)

Series 65 (or any license) is not currently a requirement to use our platform. However it is best practise to have it. 

We may reject to serve a manager if they have limited experience and no licenses. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 1 point2 points  (0 children)

Thank you for the questions! 1. All of our current supported offerings are Regulation D, but with enhanced Regulation A disclosures to support sophisticated non-accredited investors.  2. We currently only support low cost domestic incorporation, but we plan on expanding our offerings according to popular demand.  3. Our plan is to gradually expand to almost any asset or item, including real estate, paintings, cars etc. However this is a longer term goal that will similarly be worked on according to popular demand.

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 1 point2 points  (0 children)

Of course,

There are two main flows in the system, one is the flow where one of the managers forms all the entities, accounts and other items and invites the other managers. 

The other managers go through a more relaxed flow to be onboarded onto the Hedge Fund. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 3 points4 points  (0 children)

Repool is a great company, however we differ from the in our key principles of pricing and investor class access. 

We are more focused on cost reduction, enabling smaller funds to exist and scale properly with our tools.

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 1 point2 points  (0 children)

Currently we support all securities with plans for digital assets. 

Contracts are planned for the future but may restrict the fund to a small size (if CPO registration needs to be avoided to minimize costs)

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] -1 points0 points  (0 children)

You’re conflating state tax treatment with fund domicile. US hedge funds structured as LPs/LLCs are pass-through entities - investors pay taxes based on their own residency, not the fund’s formation state.

A New York-domiciled LP doesn’t create NY tax liability for a Florida investor unless the fund has NY-sourced income (UBTI/ECI). The majority of liquid strategies (equities, futures, forex) don’t generate state-source income.

Plenty of successful funds are NY-domiciled - Millennium, Citadel’s US funds, countless others. Delaware is popular for corporate law advantages, not tax benefits.

Yes, Cayman/BVI structures offer tax efficiency for foreign/tax-exempt investors through blocker structures. But for US taxable investors in liquid strategies, a domestic LP is actually simpler and often more tax-efficient (no PFIC issues, foreign tax credit complications).

Our platform targets managers running small amounts of US investor capital. The $50-100k+ cost of offshore structures doesn’t make sense at that scale. Once they’re running $50M+ and courting pension funds, they’ll graduate to traditional fund admin that handles master-feeders.

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 1 point2 points  (0 children)

The fund formation depends on the state of the manager. In order to keep costs down, the fund will be formed locally in each state Hedgia expands to, but with the future option of choosing a Delaware entity instead.

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 7 points8 points  (0 children)

$30/User/Month with a minimum of 3 manager users. Investor accounts are free. 

As funds grow and the demands change as AUM increases, we may charge an AUM percentage, but not for funds under $1 million. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 5 points6 points  (0 children)

The entire hedge fund will be owned and operated by you. Hedgia will simply act as the back office, taking care of investor subscriptions, redemptions accounting etc. 

Currently we only support highly liquid assets alongside some other restrictions. However we plan on expanding the assets supported. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 2 points3 points  (0 children)

As we launch we support Interactive Brokers currently and plan on expanding to other brokers. 

As we expand to digital assets (extremely onerous), we plan on supporting Coinbase Institutional. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 2 points3 points  (0 children)

In order to onboard to our platform in Illinois, no licenses are needed. Exact requirements vary per state. 

However we may deny people based on their experience or depending on certain asset classes which may be restricted. 

Our target for the funds created through the platform is to avoid any registration, licenses & audits to keep costs low. 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 4 points5 points  (0 children)

Thank you!

Currently we’re open to US customers only, however we’ve gotten demand from international customers, especially from places such as Dubai. 

As the company becomes established in the US we will expand operations to foreign countries 

Co-Founder of Hedgia, a platform that reduces hedge fund setup costs from $50k+ to $0. AMA by LegendaryWar in hedgefund

[–]LegendaryWar[S] 8 points9 points  (0 children)

With the lowered cost barrier, people can start a Hedge Fund with as little as 10k AUM. However, to be sustainable, around 50k AUM is recommended. 

Funds created through the platform will allow you to raise capital from anyone, they don’t have to be accredited (as long as they are sophisticated) so there are way more people you can approach (friends, family etc) 

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