Setting up a mutual fund

guillaume

Hello All,
We are a group of fund managers with a proven 7 year track record trying to set up a mutual fund to invest in equity markets in emerging economies. When doing some preliminary research on how to set up a fund, I found that there might be some legal issues involved in using our past track record to market the fund if we set it up as a hedge fund. I was wondering if any of you went through this problem, and how you solved it (setting up the fund as a money manager first...?).
Thank you very much for your help,
G

WebJunky

a colleague ran into the same issue. the legal issues he had to deal with is that his former fund did not allow him to make such claims. why? because he had the company`s resources to his avail that helped him generate that performance.  the argument is that w/o such resources the performance could not have been achieved.  to me the issue seems negotiable...but i doubt there is anything in the law that precludes you to state that you have achieved x amount of returns as long as you can prove it.

infinique

It's better to make sure you get all your partners to show you their previous employment contracts to make sure that there is no Non-Competition-Clause in their contract to prevent the company from being sued by their previous employers.