Starting a hedge fund is much different from launching other kinds of companies. Most significantly, there is almost no chance that you will be able to start this business out of a garage. No -- to get a hedge fund up and running, you need buckets and buckets of cash.

"If you really wanna succeed, and you wanna manage a higher level of assets, out of the gate it takes you eating your own cooking," said Mitch Ackles, President of the Hedge Fund Association and CEO of Hedge Fund PR. "What that means is you have to have some of your money invested at the outset. We're not talking $500,000 -- it has to be several million."

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