Not to discourage you,but starting a hedge fund can be a lot of work and cost some money to setup properly. Running a hedge fund requires more than being a savvy trader or investor. Setting up and running a hedge fund is the same as running any other business. You need to be business savvy just as much as you are a good trader. Below I have outlined some of the things you should consider if you are serious of setting up a hedge fund.
1. First, you would need to setup a Limited Partnership or a LLC company that would operate as the "Fund".
2. You then need a hedge fund attorney to draw up your offering documents and also advise you how best to setup your fund based on what type of investments you will be involved in (Very important as it can help keep you out of court).
3. Next, you can locate and select the fund's administrator and auditor. You would forward your offering documents on to these service providers.
4. At this point you can select who you want to be your prime broker for trades.
5. Once these things are in place all you have to do is get investors in the door.
What was listed above is a high level of what would be required to start a hedge fund. As mentioned before, once the hedge fund is setup it runs just like any other business. You have to find clients, answer questions via telephone or email, and keep them happy or risk losing them.
Regarding start-up costs, you are looking at may be $200 - $500 for the company costs, about $15,000 - $75,000 for attorney fees and at a minimum $2000 to setup a brokerage account. These setup costs can vary and there are many ways you can probably lower your start-up costs.
If you are a good trader find some money that you can trade with. Setup the company, which is fairly cheap, open a brokerage account in the company's name and create a good track record for your company by trading in the company's name. This can be used later to attract investors if you prove to them you have been trading successfully for a period of time. Initially you can also get seed capital from close family relatives that will not take you to court if you lose their money.
Another option would be to continue your personal trading and try to get a job or internship with a hedge fund company or private equity firm. Once in the door you can gain the experience you need and learn how to run your own hedge fund.
My advice to you is if you are as good a trader as you say you are, get some trading money (not your college money :) ) and use that to help you make money for college. To be a day trader you need at least $25,000 in your brokerage account. At this point in time, instead of trying to start a hedge fund, try to raise enough money so you can day trade to make money for college. You should have enough time on your hands, if you don't have a job, to learn all about trading and do it successfully.
I have been there and know the feeling of wanting to make money while in college. What I have presented you with is just reality, however do not let my reality check discourage you. Where there is a will there is always a way. If you are serious and want for it to happen, you can make it happen. Once you conduct adequate research and prepare yourself you can find a way to start your hedge fund.
I hope that you find this information useful and if you need more information about hedge funds you can visit:
http://www.hedge-funds-411.com/ Here is another site that has information about hedge fund start ups:
http://www.hedgefundlawblog.com