Q: I want to start a hedge fund in Delaware and act as a manager, do I need a investment advisor licence to do that?

A: Starting a hedge fund in Delaware and acting as its manager does typically require you to register as an investment advisor, depending on certain factors. The requirement for registration is governed by both federal and state laws, which vary based on the assets under management, the number of clients, and other criteria.

Under the Investment Advisers Act of 1940, investment advisors who manage hedge funds with more than $100 million in assets must register with the Securities and Exchange Commission (SEC). If managing less than this amount, you may still need to register or qualify for an exemption in Delaware or any other state where your clients reside.

Additionally, hedge fund managers often fall under the "private fund adviser" exemption, which applies to advisors who manage only private funds and have less than $150 million in assets under management in the United States. However, this exemption still requires adherence to certain reporting and record-keeping obligations.

Given the complexities of securities laws and the potential consequences of non-compliance, it's advisable to seek guidance from a legal professional experienced in securities law. They can help you navigate the registration requirements and ensure that your hedge fund operates in compliance with applicable laws and regulations.

Remember, launching a hedge fund involves navigating a complex legal landscape, and proper legal counsel can help you understand your obligations and mitigate risks.