How To Go From Robinhood Trader To Hedge Fund Manager

Hey guys, welcome back to the channel. I'm Bridger Pennington, and today we're going to talk about going from a retail trader to a fund manager. Now, before you guys crucify me in the comments and say fund managers are evil, bad, terrible people, running a fund is one of the most lucrative vehicles on the planet. I mean, look at the Forbes 100 list. It is riddled with fund managers. I mean, even take the infamous Ken Griffin. He's the guy who runs Citadel, who shorted GameStop and shorted AMC, and who we are going to crush. But He has actually been making $100 million a month for the past 6 or 7 years on average. And no, it's not like Jeff Bezos, like his net worth goes up and then down because of the stock price. No, he literally from his fund is making $100 million a month. I mean, who would like an extra $100 million a month? That sounds pretty nice, right? So this is what we want to talk about today is moving from a retail trader to a fund manager. Hi, my name is Bridger Pennington. I've started actually 2 funds in my 20s, launching a 3rd fund right now. My brother is a securities attorney and does law on funds, and my dad is the co-founder of a deca-billion-dollar family of funds. Additionally, we've helped dozens and dozens of people set up and launch their very own funds as well, many of them in the hedge fund space. Actually, these guys right here started a hedge fund and within 1 year had raised over $500 million. Literally, these guys 24 months ago were retail traders like me and you, but used the vehicles of a fund to scale to a huge level. So with that being said, let's dive into the video. Now this is the story of many retail traders. They start out trading very happy. They're telling their family and friends, maybe they disagree, but they say, screw mom and dad, I'm gonna go make a gazillion dollars in the markets. Ape strong together, baby. And they go out and one of two things happen. One, they make a lot of money, they do actually very well. Or number two, they get their teeth kicked in and they swear to never trade again. Now I'm guessing you're watching this video because you're in this realm right here. So the people that trade and do well, guess what starts to happen? They start to— obviously they brag about it. Most of these people tell their friends and family how much they're crushing it and they're bringing home the bacon and how they're the next Ray Dalio. So naturally what happens is you get friends and family To send you money. And they usually— what happens, they send you Venmo checks and payments, all that kind of stuff, and you start to trade money in your account. You're a little apprehensive to it. You don't know what to do. Is this legal? Is it not legal? Should I take the money? And some people take the money, some people don't, and they get stuck at this weird limbo level where they're managing their grandma's money here and they don't know quite how to do it all. Instead of taking Venmo requests and PayPal, what you should do is think about getting into the fund space. Now the first thing you need to do is set up a great foundation to build upon. Yes, you build a foundation of your yourself trading, but it's time to grow beyond that. Now, at this point, you could move to a full hedge fund. A lot of hedge funds will cost you about $30,000 to set up. There's also a lot of legal and accounting. And guess what? That's kind of what we teach on this channel, to teach you how to put that together and all that kind of stuff. But this can feel like a little bit of a daunting task, right? To take investor money, really scale up and try to go big. And ultimately, this is what stops a lot of retail traders from actually scaling into a full-out hedge fund because they want to play small in their small little bubble with their own money. Thankfully, There is a great vehicle that has been put together for people in this in-between stage that want to start to scale, maybe want to test it out, but don't know if they want to go the full hedge fund route. And that is called a hedge fund incubator. This is a vehicle designed for retail traders to cut their teeth and get into the hedge fund game. I actually hate the phrase cut your teeth, but that's the phrase that people use. I think it just makes me feel weird when I say cut your teeth. I don't know why. This vehicle is incredible. It costs about $1,000 to set up. And we actually on our channel made a whole video on just hedge fund incubators that you can go check out. And actually additionally, we made another video on our channel on how to go out and start a full-out hedge fund from scratch. Hedge fund incubator vehicle is a beautiful vehicle, not only because it's a small price point to get started, but because you can take family and friend money into a legal structure and start to build your name and brand as a hedge fund manager and have real records Not from your personal account, anybody can pull up great trading accounts from their personal, but have it bona fide and audited accounts from a hedge fund at a very small scale that you can eventually scale up into a full-on hedge fund. This comes complete with all the rules and documents for your investors that are gonna become partners with you in the fund. And in the case that you lose some people your money, you're protected legally versus before, if you're just taking grandma's money, she can come and whack you with her cane or whatever she wants to do, but you don't have a great legal structure to protect you if things go south. And what we've seen happen with a lot of people in our space is they start a hedge fund incubator, they get in the game, they realize the opportunity at hand for them to scale to a full-out hedge fund and potentially be making million-dollar, $5 million, $20 million months like some of these big hedge fund managers do. As a small nudge there, if you like this video, hit the like button and subscribe below. So if you're a retail trader and thinking about scaling and you feel like you've built a great algorithm and a great process, you should start considering getting to the hedge fund game. And a great way to start is a hedge fund incubator. And we have other videos that walk you through all the ins and outs of a hedge fund incubator and more mechanics on how to start a hedge fund from scratch. Now, once you set up your hedge fund incubator, you will move your accounts from a personal account over here to the actual hedge fund account. And you can set up accounts still at the same brokerages you're at. You can use a prime broker like a big bank, a Credit Suisse or a JPMorgan Chase, or you can use other brokerages like Interactive Brokers depending on what you're trading. Additionally, not using a fund account to trade from and you're getting audited financials on that account, you can hopefully apply for more leverage and more perks from some of these bigger brokerage firms. You might get included in pre-IPO shares, access to more reports, and a handful of other things that these types of brokers or banks or institutions would provide to you. Additionally, you're protected legally from family and friends coming after you for lawsuits if the scenario where things drop really poorly And finally, you can use this as the foundation to eventually go and launch and scale your own hedge fund. Love them or hate them, hedge funds make a lot of money and you can get in that same game. And if you don't like how they're playing it, play a different set of rules and change the industry for the better. We've helped dozens of people, regular people like me and you, go out and launch their very own hedge funds. You don't have to have an Ivy League degree or Wall Street experience to go do this. Regular people like me and you are going out and doing this. Thank you guys so much. My name is Bridger Pennington. If you like this video, please like and subscribe and check out our other videos on launching and scaling hedge funds. Additionally, if you like this, we have a 1-hour free training below where you can learn more about how I launched my first fund and how you can get involved as well. Thank you guys and see you in the next video. Thank you.