Starting a hedge fund might sound like a big dream, but it’s doable – as long as you have the money, connections, and legal support.
In simple terms, it’s not as easy as Bridger Pennington makes it look. His success is often attributed to having a well-known hedge fund manager as his dad, likely giving him a financial head start.
Now, there’s a course called “Investment Fund Secrets” by Bridger Pennington, claiming it can guide you through launching a hedge fund even if you lack experience or want to avoid high fees.
If you’re reading this, you’re probably wondering if it’s a legit opportunity or just another scam.
This review aims to give you the answers you need.
Full disclosure: I have no ties to Bridger Pennington, so you can trust that this review is impartial.
And by the end, I’ll share a better alternative that has helped me generate a consistent passive income online.
Table of Contents
- What is Investment Fund Secrets?
- Who is Bridger Pennington?
- What’s Inside Investment Fund Secrets?
- How Much Does Investment Fund Secrets Cost?
- Refund Policy
- How to Start an Investment Fund?
- Would You Rely on Investment Fund Secrets for Financial or Legal Advice?
- Can You Make Money With Investment Fund Secrets?
- Praise for Investment Fund Secrets
- Criticism of Investment Fund Secrets
- Is Bridger Pennington a Scam?
- Is There A Better Way to Make Money?
What is Investment Fund Secrets?
Investment Fund Secrets is an online course designed for anyone keen on learning how to kickstart a hedge fund and invest other people’s money. In the course, you can choose between two options:
- Core Training
- Mastermind Group
Here are the key takeaways about hedge funds, as highlighted by Investopedia:
Nature of Hedge Funds: Hedge funds are financial partnerships that invest in pooled funds, employing various strategies to actively generate returns for their investors.
Strategies Used: These funds may manage aggressively or utilize derivatives and leverage to enhance returns. Common hedge fund strategies include long-short equity, market neutral, volatility arbitrage, and merger arbitrage.
Access Restricted to Accredited Investors: Typically, only accredited investors have access to hedge funds.
Read more: How to Make Money with Investments
Who is Bridger Pennington?
Bridger Pennington is the brains behind Investment Fund Secrets, positioning himself as an investment expert. He operates an investment fund named Bridge Grow Capital, which is officially registered with the SEC.
Aside from his fund, Bridger runs a YouTube channel with approximately 76.4K subscribers as of now. He frequently posts videos, though not all of them are directly geared towards helping you make money. While some are interesting, their practical value might vary.
Alongside his YouTube presence, Bridger hosts a podcast named Investment Fund Secrets. The podcast aims to educate people on initiating, expanding, and scaling their investment funds. It’s unclear whether he’s sharing knowledge altruistically or promoting his course, but the latter seems probable.
It appears that Bridger Pennington is deeply committed to marketing his investment courses.
If you want to get a taste of his teaching style, you can watch the video below:
What’s Inside Investment Fund Secrets?
Investment Fund Secrets is an online program designed to guide you through the process of establishing a hedge fund and managing investments on behalf of others. The program offers two options: one providing core training, and the other incorporating a mastermind group. Additionally, there’s a separate course focusing on real estate investing, along with legal templates and a legal review course.
The program boasts 72 training videos, totaling 10 hours of instruction. However, it’s worth noting that this might seem limited given the complexity of starting a hedge fund.
Now, let’s dive into the course content to give you a clearer understanding of what Bridger Pennington offers in this program.
The Funds Secrets Mastermind
This course provides training on starting a hedge fund. Some of the lessons you’ll learn include:
- Find deals and marketing positions
- How to get partners
- Starting your fund
- Laws, regulation and compliance
- Documents you will need
- Accounting principles
- How to raise capital
Ultimate Excel Vault
The Ultimate Excel Vault provides you with finance models and tools for tracking and reporting on your funds.
The Fund Launch Workbook
The launch workbook is like a cheat sheet for the course material. It’ll help you learn faster, and you can refer to it later when you need to recall something.
It is the Membership where you can meet with different fund managers and get their advice. This is the most valuable element of the service.
If you run into a problem, you can get answers directly from people familiar with the hedge fund business model.
Limited Partnership Agreement And Legal Templates
Bridger Pennington says that set up costs are the highest part of starting a hedge fund, with costs estimated at over $50,000. He provides 13 different templates for the documents you’ll need to get set up.
I doubt these templates will save you too much money, though. You will likely still need a lawyer for everything.
Lawyer And Accountant Handhold
The Investment Fund Secrets team includes accountants and lawyers. If you need assistance, you may contact them. However, it will not be the same kind of assistance you would receive from your own lawyer or accountant.
Full Access To Live Flip
This is an added bonus and has nothing to do with creating a hedge fund. It instead covers real estate investments and house flipping.
How Much Does Investment Fund Secrets Cost?
Investment Fund Secrets comes with a hefty price tag of $5,000 for enrollment. If that upfront cost seems daunting, there’s a payment plan option where you pay $1,697 per month, totaling $5,091.
However, it’s crucial to approach this cost with caution. Starting a hedge fund after completing the course seems unlikely, making the $5,000 investment potentially questionable. At best, consider it more of an entertainment expense.
Regarding refunds, there’s a 30-day money-back guarantee.
But here’s the catch: you must not progress beyond 50% of the course, and attending bi-weekly coaching calls is a prerequisite for getting your money back.
How to Start an Investment Fund?
If you want to set up a hedge fund, you usually have to go through the following steps:
1. Define Your Investment Strategy:
Begin by clearly outlining your investment goals. Ensure your strategy is both replicable and scalable, steering clear of reliance on specific economic conditions for success. Common hedge fund strategies include long/short equity positions, merger arbitrage, distressed company acquisitions, and algorithm-driven quantitative approaches.
2. Incorporate Your Hedge Fund:
Choose the right business structure, such as an LLC or limited partnership, with guidance from professionals. Register with the secretary of state, file articles of incorporation, and obtain an Employer Identification Number (EIN) from the IRS.
3. Complete Proper Registrations:
Ensure legal compliance by registering your company with regulatory bodies like the SEC and state authorities. Pass the Series 65 exam administered by FINRA and register the hedge fund offering with the SEC using Form D for exempt securities. A lawyer’s expertise is often essential for meticulous filing.
4. Draft Your Investment Agreement:
Craft a comprehensive agreement outlining fee structures, minimum commitments, and distribution policies. Common industry standards include a 2% management fee and a 20% performance fee.
5. Build Your Team:
Assemble a team of key service providers, including a broker for prime brokerage services, an auditor for result audits, and an administrator for day-to-day operational tasks.
6. Market Your Hedge Fund:
Comply with laws and regulations, especially when dealing with accredited investors. These investors, holding $1 million in liquid assets or having an income of $200,000 per year (or $300,000 per year with a spouse), are the target audience. Showcase your audited track record and articulate the strategy’s future potential.
7. Launch Your Hedge Fund:
Once you’ve garnered enough investor interest, officially launch the fund. Link up the brokerage account and initiate trading to mark the beginning of the operational phase. Post-launch, ongoing efforts involve managing the fund, continuous marketing, and attracting new investors for business expansion.
Would You Rely on Investment Fund Secrets for Financial or Legal Advice?
Regrettably, Investment Fund Secrets falls short in providing financial or legal advice to its users. Despite its focus on teaching financial business strategies, the program refrains from offering such advice. Although Bridge Investment Group claims to have access to legal counsel, it’s crucial to understand why.
A glance at their website’s disclaimer makes it explicit that they do not furnish any financial or legal advice to their users. Bridger himself has acknowledged that the show is more for entertainment than practical guidance.
Can You Make Money With Investment Fund Secrets?
Bridger Pennington makes starting a hedge fund sound easy, insisting you don’t need a degree or Wall Street experience. While that may be his take, I beg to differ.
Earning money through this program appears more like wishful thinking to me. Hedge funds are intricate financial structures, and their setup can be quite expensive.
Unless your dad is Bridger Pennington or a partner in a massive $25 billion hedge fund, the chances of making money with Investment Fund Secrets seem slim.
Launching a hedge fund is a substantial undertaking. It demands a significant investment of your time and money to initiate the setup process. After that, the real work begins: convincing others to invest with you and effectively managing their funds.
While the potential payoff is significant, there’s also the risk of investing a considerable amount of time and money without guaranteed returns.
Praise for Investment Fund Secrets
1. Refund Policy
On the surface, the refund policy appears promising. However, there’s uncertainty about whether Bridger Pennington will genuinely honor this promise.
Criticism of Investment Fund Secrets
1. Entertainment Disclaimer
Despite promising to teach hedge fund creation, the course’s disclaimer hints that it’s more for entertainment than practical guidance.
2. Background Concerns
Bridger Pennington isn’t a self-made hedge fund manager. His father’s role as a managing partner in a substantial hedge fund, boasting $25 billion in assets, raises questions about Pennington’s independent success.
3. Positive-Only Policy
Students are restricted from expressing anything negative about the course. This limitation suggests a lack of transparency and openness.
4. Price Tag
The course comes with a hefty price of $5,000, a significant investment for something that may not translate into real financial gains.
5. Financial Barriers
Starting a hedge fund requires a substantial investment, reaching tens of thousands of dollars. This business model is complex and not suitable for the average people.
Is Bridger Pennington a Scam?
Bridger Pennington doesn’t appear to be a scam artist. His knowledge about hedge funds seems rooted in his family background, with his father owning one. However, the notion that enrolling in his course can turn anyone into a successful hedge fund manager may be overly optimistic. The reality is, venturing into hedge funds requires substantial capital and influential connections.
While Pennington simplifies the process, the truth is far from easy. Starting a hedge fund involves intricate knowledge of laws and regulations, necessitating legal guidance. Pennington’s claim that a degree or Wall Street experience isn’t necessary oversimplifies the complexities involved. His father’s prominent position in the industry further raises questions about the course’s accessibility to individuals without similar financial backing.
The hefty price tag of $5,000 for the course, excluding the significant capital needed for launching a hedge fund, makes it an impractical option for many. Despite offering insights into setting up a hedge fund, Investment Fund Secrets falls short in providing crucial financial and legal advice.
The course’s terms, which restrict buyers from expressing negative opinions, seem questionable. This limitation raises concerns about transparency and the course’s actual value.
Bridger Pennington’s online presence primarily showcases his marketing prowess rather than concrete evidence of investment success. While his ability to promote the course is evident, the lack of substantial information about his investment track record raises doubts.
Is There A Better Way to Make Money?
If you want to make a full-time passive income, I’d suggest you to start an affiliate marketing business online.
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