Starting Own Fund in Canada

Anyone here from Canada have their own fund?

Did you incorporate or form a partnership or investment club type of structure and why did you choose your structure?


palantir, when you going to start your own thing? i was given some pretty solid advice over the weekend saying I should just start up something instead of doing it through arm’s length…

btw, there was an article in Barrons about your Lowes…keep in mind though, DO pays a 5%+ dividend at the moment which is one of the underlying businesses…

Im going to have to wait to develop a few years of experience/become really good at it before I can think about something like that. Build up some decent capital too. But no question it is a goal of mine.

You should check out Jim Chuong at I believe he runs an investment club. His email is jimchuong /a/t/ hotmail /dot/ com. Keep me posted on what you decide.

Did you see the 16 year old on the Lang & O’Leary exchange yesterday? He says his return is 15% and is right in over 70% of his calls. He currently manages his family’s funds. O’Leary practically begged him to call him when he turns 18.

Its always impressive to see somebody very young go at it. It means he should get better overtime…

Returns wise its decent (15% annually over two years) but I think Palantir and a few ppl problably have similar numbers…

his top 3 picks are Majestic SIlver, Ag Growth, and Anally Capital…

It seems strange to me to accuse 15% over the past two years as decent. apparently I need to step my game up lol

its decent when you pick and choose when to put money in and without the pressure of soembody overseeing you in addition to institutional constraints…

i think most PMs start off with excellent results when they first start investing on their own…

what is amazing about this kid is the fact he is a kid…if i came out and told you i got that or palantir did nobody would care…

Hi guys,

I am based in Montreal and I started my fund last year. We have currently 10 partners and each partners contribute capital every month. Having worked for an hedge fund, I can say that the easiest way is a partnership with a solid by-laws. Members get their prorata of dividend /realized capital gain/loss for tax purposes, reporting is minimal.

Having a lot of good connections with capital market peeps is also a plus, you get access to research and I am lucky enough to have a capital IQ account and Bloomberg terminal at work. You are in the loop for market current (ie the flavor of the month is long gold equity short energy equity) so at least you are riding the institutional wave.

Plus, those extra curricular weight heavily when it comes to job application and having some asset management experience is a solid plus.

Concerning that kid, I wonder how what his strategy is… If he entered the market 2 years ago, hee probably entered the market at the right time, nothing else.


Ha. I havent been investing long enuf to get a “track record” yet…but I definitely aspire to 15% or greater, however Frank is right, when you’re investing your own money, you aim for higher returns, but for a big fund 15% is excellent.

Frank, I may follow you into Teva, have you looked at Parker Hannifin?

Name Already Taken…can i get more insight into the setting up process? did you get a lawyer to write up the legalities? i’m in the beginning stages of doing this. How much was the total start up cost?

My goal is to have something set up so if someone wants to put in a few bucks i have everything in place to get it going …i’m doing this to establish a formal track record and have something formal i can call my own…

Palantir, I haven’t looked at that firm but from a brief scan it looks promising. I’m in the middle of earnings season right now so don’t have anytime but keep me up to date.

Awesome…if you dont mind…can I read some of your investor letters/other info?

I too am interested…

I’m in. My dream of automated income has ccome true!

Hi guys,

Well the reason you dont want to incorporate is because if you do, then you need to prepare tax fillings, plus you get taxes on capital gains and dividends. It can become a nightmare to distribute funds to a withdrawing member and maintain the share capital account.

When you do a partnership, you prepare a bylaw and every member has their shares. No annual tax filling, avoid consumption tax filling.

I originally wanted to create a bank account to transfer to my trading account, but with that many members, it was complicated to have various names on it. So what you can do is setup fund contribution transfer directly to the broker account. We have 8 original member who have their name on the trading account.

If you want to make a proper hedge fund structure, you need a bank account to the name of the fund, a brokerage account etc. It can be a harder sell because people are afraid of Ponzi and stuff, so monthly statement and sending trade blotter is a good idea.

Typical hedge fund structure are partnership and the managing company is a corporation who charges a mgmt fees and performance fees.

I dont mind sending you an example of bylaws of my partnership, a trade blotter example, a month-end summary or even some research I have done.

Just give me ur email.

The biggest challenge is to find investors, that is why I like to plublish research to get some exposure and word of mouth going.


No lawyer, you can do it yourself. Its very expensive to have them prepare a bylaw. The bylaw I did it myself based on various document found online and my experience with existing hedge fund contract.

Yes very good idea for the track record and it makes you alot sharper when you have money risk on

can you please send to:

tangask at gmail


we’ll correspond through the email.

Regarding the Hedge Fund structure, having a a partnership + a corporation as a managing partner is essentially a Limited Liability Company (LLC). Available in the states but not in Canada, unless you are a professional (Lawyer, doctor etc) So once you get your charter, I think you can set up an LLC in Canada.

Do you mind emailing the sample docs that you are comfortable with sharing to Joshua.accounts @ please?

Im very interesting in doing similar things woth a couple of friends.

Thank you

Do you mind emailing the sample docs that you are comfortable with sharing to Joshua.accounts @ please?

Im very interesting in doing similar things woth a couple of friends.

Thank you