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I have $1,000 to invest, can I start a hedge fund?

Well, Paulson hedge fund are generally considered to be investments that have pools running into the millions, but if you really are in love with the idea of being a hedge fund manager, there are various ways to go about it.

Firstly, you can use $1,000 as a starting point for this fund, but naturally then your investments will be very small ones, with returns that aren't expected to be all that big, so you will essentially be a small time fund manager. If you are adamant you want to go this route with $1,000, you can look to weaker currency regions, like some countries in Africa and Asia, where a lot of talented individuals, with brilliant ideas that can work locally and internationally, only need a small amounts of money to get them going, relatively speaking of course.

Secondly, which is better way to go if you want to be a real hedge fund manager, you can join up with other managers who contribute a little bit of money each, of which the total makes up a bigger hedge fund.

This type of setup is more commonly known as a joint venture and it can really pay off in a big way because you get dividends according to the percentage of what your contribution adds up to. Even something as small as 0.5% can add up to a lot of money, if for instance you invested in this type of fund pool that in turn funded the next Facebook, Google etc.

The downside to going into hedge investing with such a little amount is that you probably don't have all that much patience to want to see returns and unfortunately, these type of funds generally have a very long term view in their operation.

The kinds of ventures fund investors get into generally are in their infancy stages of development, requiring a lot of time to develop or even to simply see out their ground-level feasibility studies, to see if they will indeed succeed or not.

If you only have $1,000 to invest then this type of set up is probably not the best suited for you, as your heart might develop some palpitations at the common practice of fund managers to generally go on the principle that 9 out of every 10 ideas will bring in results, while all 10 are funded to see out what might transpire.

The short version of the answer to this burning question is that you probably shouldn't really get into hedge fund investing with a little amount of money such as $1,000, but you should rather go into other investments, which will help you build up enough money to allow you proper entry into the hedge fund investment world.

A lot of hedge fund managers like Hedge fund manager, have had down periods, getting as bad as even bankruptcy, between the millions and millions they had in their accounts at other stages, so rather look elsewhere if you only have $1,000 to invest.