How I Launched My Hedge Fund That Makes $1.2M/Year In Revenue

Divakar Choudhary

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Published: May 28th, 2023

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Divakar Choudhary

Founder, Secvolt

$100K

revenue/mo

Founders

Employees

Secvolt

secvolt.com

from Delaware

started February 2022

$100,000

revenue/mo

Founders

Employees

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Hello! Who are you and what business did you start?

Hello, I am Divakar Choudhary, the founder of a record-breaking hedge fund Secvolt, and it's a pleasure to share my story with you.

We started Secvolt 5 years back with a mission to provide a system to our partners around the globe that helps them build generational wealth & create the legacy they have always wanted to leave behind.

We are registered in Delaware, USA, and also operate from our offices in Dubai, UAE & New York.

Secvolt primarily establishes itself as an elite investment alternative. With our highly intelligent quant models, excellent risk management & mitigation protocols, and brilliant investment strategies, we are yet to see a month where we have faced losses. Last year, we broke records, generating as incredible as 262.10% returns for our investors and solidifying our reputation as one of the top hedge funds in the world.

The flagship product that we sell is the excellence of our quant algorithms & wealth management solutions to maximize the value of our client's portfolios. Our diverse clientele consists of dignified high-net-worth & ultra-high-net-worth individuals looking to build wealth & curate a long-lasting legacy!

We measure our success by the priceless values we can add to our clients' lives & portfolios. Portfolios can be measured in numbers, but when one of our clients tells us that he gets to spend more time with his loved ones because he doesn't have to worry about his wealth now, that is when we know we have arrived!

What's your backstory and how did you come up with the idea?

My journey into the world of finance began when I was a young child. I grew up watching my parents work tirelessly to provide for our family, and I believe I unconsciously learned the value of hard work and determination from them. As I got older, I became fascinated with the stock market and how it could create wealth and opportunities for those willing to take risks and make smart investments.

I started trading at an early age. Numbers always intrigued me. I launched a cybersecurity business before Secvolt. It was an incredible learning experience, but I knew I wanted to be more hands-on with my investments and take a more entrepreneurial approach to my work. I remember once I was reading the book 'The Man Who Solved The Market,' and something resonated with me, and that's how the idea of owning a hedge fund was born.

I don't believe in having the 'eureka' or 'aha' moments because I believe entrepreneurship is something that you are born with or you cultivate the habit over the years. I have always wanted to take control of my destiny and create something uniquely mine.

Entrepreneurship requires a certain level of resilience and the ability to redirect when things don't go according to plan.

While my cybersecurity business was in full swing, I also worked on building up my knowledge, skills, and experience, all to start my fund. It was challenging, but I was determined to make it happen.

Finally, the day arrived, and I launched my hedge fund with my co-founders, Mr. Hanif Shaikh, CMO & Mr. Ashish Verma, CIO, who shared my passion for investing and dedication to excellence. The move was filled with all kinds of things, but we had the skills, knowledge, and experience to make it work.

In the beginning, we were constantly on the lookout for stakeholders who shared our vision, be it our team or our clientele. We assembled a team of talented analysts, traders, and risk managers and began developing our investment strategy. We focused on identifying undervalued companies with solid growth potential, using a combination of fundamental, technical, and sentimental analysis to make our investment decisions.

When you are delivering value, word spreads!

Our hard work paid off, and we gained a reputation for being one of the most successful hedge funds in the industry. In 2022, we shattered records by delivering the highest 262.10% returns, strengthening our position as a leader in the industry.

Looking back, I'm proud of how far we've come and of what we've accomplished, but I'm even more excited about what the future holds.

Take us through the process of building the first version of your product.

The core product offering at Secvolt is our proprietary quant models. These robust quant models provide us the edge that enables us to avoid the recessionary glut the market is currently suffering from.

The work on these models started in the second half of 2018 when I started implementing quantitative strategies in my daily trading activities. The strategies looked quite promising, which resulted in a gradual but substantial increase in results. I realized the potential of Quant-backed models in the market and decided to leverage quantitative concepts by building a full-fledged model. I roped in multiple experienced Quant developers and started the quest to build a market-beating model.

Anyone who has ever been involved with Quant trading would know how tough it is to nail a perfect Quant model. But probably due to rigorous discipline and an eye for patterns and knowledge, we were able to build a working Quant model. The basic model was enhanced by continuous and rigorous testing in the live market. But we wanted more! A Hedge Fund.

A Hedge Fund needs a Team, and this was when I came across Hanif. A serial entrepreneur and someone who has a knack for growing teams and building companies, Hanif was a perfect fit. Hanif bought in Ashish to join the team as the third Co-founder and built up a robust technical infrastructure for the company.

The models, which have been working in isolation for 4 years now, formed the base of the best performing Hedge Fund in 2022, right in the year of its inception.

Set up as a Limited partnership in Wyoming in Feb 2022, Secvolt gradually expanded its team and client base. A wonderful product, wise founders, and an energetic team meant that within a few months of inception, it reached $1 million in Assets under management. “Not Enough!” I always tell myself & everyone, and thus the team is constantly aiming for more in 2023 and the years to come.

With every failure comes valuable lessons and insights that can help you grow and improve.

Describe the process of launching the business.

Launching a hedge fund is no small feat, and the process can be both exciting and challenging. As someone who has been through it, I am happy to share my experience and insights on what it takes to start a successful hedge fund.

The first step in launching a hedge fund will be to develop a strong investment strategy. This means doing extensive research, analyzing market trends, and identifying undervalued companies with strong growth potential. At the same time, it's essential to understand your risk tolerance and investment goals clearly.

Once you have a solid investment strategy in place, the next step would be to establish a legal structure for your fund. This includes registering your fund with regulatory agencies and complying with various securities laws and regulations.

Next, you need to assemble a team of individuals who share your vision and are committed to helping you build a successful fund or brand. This might include analysts, portfolio managers, and various professionals from diverse fields, be it marketing, client relations, business development, or human resources, who can help you execute your plans & strategies.

Of course, launching a hedge fund also requires a significant amount of capital. Ours was bootstrapped. As an alternative, you'll need to secure funding from investors who believe in your investment strategy and are willing to commit their capital to your fund. This is where marketing and networking become critical. You'll need to build relationships with potential investors, attend industry events, and promote your fund through various channels, including social media, press releases, and other marketing efforts.

Once you have secured funding and assembled your team, it's time to launch your fund. This involves setting up systems and processes for managing investments, complying with regulatory requirements, and reporting to investors.

It's important to note that launching a hedge fund is not a one-time event. Instead, it's an ongoing process that requires constant monitoring, analysis, and adjustment. You'll need to stay up-to-date on market trends, adjust your investment strategy as needed, and keep your investors informed about your fund's performance.

Reflecting on my experience launching my hedge fund was both challenging and rewarding. It required a significant amount of hard work, dedication, and perseverance. However, it was also an opportunity to pursue my passion, build a successful business, and positively impact the lives of my stakeholders.

If you're thinking about launching your hedge fund, I encourage you to keep at it. You keep going on & on, you sweat in silence, and boom, one fine day, you lead the life you have always dreamt of!

Since launch, what has worked to attract and retain customers?

I advise aspiring founders to focus on building a strong foundation for their businesses. This includes developing a clear mission and vision, hiring talented team members who share your values, and prioritizing communication and transparency with investors and stakeholders.

When it comes to increasing traffic and sales, we've found that a multifaceted approach is vital. Firstly, we prioritize building and maintaining a robust online presence. This includes utilizing social media platforms like LinkedIn to connect with potential investors and share market insights. We also leverage email marketing to inform our network of our latest research and investment opportunities.

In addition to digital marketing efforts, we strongly emphasize developing meaningful relationships with investors and strategic partners. We've established valuable connections and created collaborative opportunities by attending industry conferences and networking events.

Another effective strategy for increasing traffic and sales has been through thought leadership and public relations. By publishing insightful research and commentary on market trends, we've positioned ourselves as experts in our field and attracted the attention of both investors and the media.

When it comes to marketing and growing your business, it's essential to focus not just on what you're doing but also on how and why it works. This means taking a data-driven approach to analyze the effectiveness of your marketing efforts and constantly iterating and improving upon them.

Retaining existing customers is just as important as attracting new ones. We prioritize maintaining regular communication with our investors and informing them of our latest research and investment opportunities. By demonstrating consistent value and delivering on our promises, we've been able to establish long-term relationships with all our stakeholders.

Last but certainly not least, Word of Mouth spreads like fire. If you keep delivering the best you can, your brand value has a snowball effect!

How are you doing today and what does the future look like?

At Secvolt, the growth is overwhelming. The growth in the number of clients, their total investments with us, or even the total inquiries from potential clients is extraordinary in the gloomy environment buoyed by recessionary pressure. The website is seeing a month-on-month growth in organic traffic, and the content received about 100k impressions last month across the internet. In March, we are on track to triple this number.

We have already been covered by major publications like Khaleej Times, Economic Times, and Financial Express for our efforts.

Through starting the business, have you learned anything particularly helpful or advantageous?

Starting and growing a business has taught me countless lessons that have been invaluable to my personal and professional development.

I've learned the importance of staying agile and adaptable in the face of change. The financial landscape is constantly evolving, and it's crucial to be able to pivot and adjust your strategies accordingly. This means staying informed, keeping up with the latest trends and technologies, and being willing to experiment and take risks.

Of course, I've made my fair share of mistakes along the way. But over this period of starting and establishing the business, I learned that entrepreneurship requires a certain level of resilience and the ability to redirect when things don't go according to plan.

Through these challenges and obstacles, I've also made significant decisions that have helped propel my business forward. For example, forming strategic partnerships and focusing on targeted marketing efforts have been instrumental in growing our customer base and increasing our brand awareness.

While some factors were outside my control, such as luck, timing, and market trends, I also recognized the importance of adaptability and agility. Being able to shift our strategy quickly based on market conditions and consumer demand has been critical to our success.

Finally, starting and growing a successful hedge fund has taught me the importance of building strong relationships and investing in people. From our investors to our team members, every individual plays a critical role in the success of Secvolt. By prioritizing collaboration, communication, and respect, we can build a culture of excellence and achieve even greater heights.

I am grateful for the many valuable lessons I've learned through our hedge fund, and I am confident that these lessons will continue to serve me well in all aspects of my life.

What platform/tools do you use for your business?

As a hedge fund, we use various platforms and tools to manage our operations efficiently. The core tools/services we use for fund administration are Formidium Corp and Copper.co for Custodian Services.

One of our favorite tools is Bloomberg Terminal, a financial data and analytics platform that provides real-time market data, news, and research. We use it extensively for our investment research and analysis, monitoring of markets, and tracking of economic data.

We also use software tools like Excel and Python for data analysis and modeling and various CRM and project management tools to manage our relationships with investors and vendors.

Ahrefs for SEO and Buffer for Managing social media content from the core of our marketing stack.

Other essential tools we use are communication platforms like Notion, Slack, and Google Workspace, which enable us to collaborate seamlessly with our team and clients, regardless of location. These tools have become increasingly important in the wake of the pandemic, as remote work has become more prevalent.

In addition to these specific tools, we strongly emphasize cybersecurity and data privacy and invest in the latest security software and protocols to protect our client's data.

Our tools reflect our commitment to data-driven decision-making, collaboration, and secure operations. By leveraging the latest technology, we can stay competitive and deliver the best possible results for our clientele.

What have been the most influential books, podcasts, or other resources?

As a hedge fund owner, I've found inspiration and valuable insights from various books, podcasts, and resources. One book that has particularly influenced me is "The Man Who Solved the Market" by Gregory Zuckerman. This book tells the story of Jim Simons and his success in creating Renaissance Technologies, one of the most successful hedge funds in history. It highlights the importance of using data and algorithms to drive decision-making and how perseverance and grit can lead to significant success.

Another resource that has provided me with valuable insights is the podcast by Naval Ravikant. His podcast, "The Knowledge Project," covers a wide range of personal and professional growth topics, including entrepreneurship, investing, and decision-making. One of the critical lessons I've taken from his podcast is the importance of developing a growth mindset, constantly seeking out new knowledge and perspectives, and striving for continuous improvement.

As an entrepreneur, a podcast that has been particularly valuable for me is "The Tim Ferriss Show," where Tim interviews world-class performers from various fields and explores their strategies and tactics for success.

I've learned that success in the hedge fund industry requires a combination of cutting-edge technology, persistence, and a growth mindset. By staying curious, seeking new insights, and constantly striving for improvement, I believe I can continue to drive growth and success for my business.

Advice for other entrepreneurs who want to get started or are just starting out?

As an entrepreneur, my top tip would be to focus on solving a problem that you're passionate about. Building a business is a long and arduous journey, and having a deep-rooted passion for what you're doing to sustain you through tough times is essential.

I've seen many entrepreneurs fall into the trap of chasing after the latest trend or hot market without a genuine passion for the problem they're trying to solve. In my experience, this often leads to a lack of focus, burnout, and, ultimately, failure.

Another key learning for me has been the importance of building a strong team. You can't do everything alone, and it's crucial to surround yourself with smarter individuals who complement your skill set. Hiring the right people and fostering a culture of collaboration and innovation can make all the difference.

When it comes to mistakes, I often see entrepreneurs underestimating the importance of customer validation. Gathering feedback from potential customers early on is critical to ensure you're building something people want. Launching a product or service without validating demand can result in wasted time, resources, and money.

Lastly, my biggest piece of advice would be to embrace failures. I know it's easier said than done, and failures might be daunting, but entrepreneurship is inherently risky, and setbacks and failures are inevitable. But with every failure comes valuable lessons and insights that can help you grow and improve. Don't be afraid to take risks and make mistakes; it's all part of the journey.

Remember that entrepreneurship is a journey, and it's up to you to make it an adventure.

Are you looking to hire for certain positions right now?

We are always open to candidates who can contribute to our journey to build the biggest Hedge Fund in the world. Though we are not open for any specified position, if a candidate thinks they would be a good fit for our mission, write us at [email protected].