From the category archives:

Basics

Are Hedge Fund Managers Born or Made?

December 15, 2011

Nature versus nurture? The argument is as old as Sigmund Freud’s first couch and might never be resolved. Still, the question remains for every field of endeavor, hedge fund management included: Do you need to be born with something special to do this well, or can anyone be trained to do this? A recent blog [...]

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Why List with Hedge Fund Databases?

December 7, 2011

An earlier article on this site explained how you can use databases for marketing your hedge fund to investors who might be interested in your investment strategy. But capital introduction is a two-way street, so it’s just as important that you make it easy for investors to find you. There are two kinds of hedge [...]

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Picking a Hedge Fund Administrator

June 8, 2011

If you’re starting a hedge fund, you need a hedge fund administrator. You’re likely to fail at marketing your hedge fund to institutional investors without one. You might not even be able to secure a banker for routine transactions if you’re leaving it to yourself to calculate your own net asset value. Having a fund [...]

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Check-in Time for Hedge Fund Hotels?

April 20, 2011

The demise of hedge fund hotels never happened. Years after UBS got caught by Massachusetts regulators steering its tenants none-too-subtly toward its trading operations, dozens if not hundreds of business centers around the world continue catering to managers engaged in starting a hedge fund. The hoteliers have learned their lessons, none more so than Mark [...]

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Selecting the Right Prime Broker

April 6, 2011

One make-or-break decision anyone starting a hedge fund has to face is who to tap as a prime broker. Pinning down a skill set for this role can prove challenging because one size — or even a dozen — doesn’t fit all. You can’t bring the prime broker’s role in-house and closely control it, and [...]

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Prime Brokerages Assisting With Hedge Fund Marketing

March 28, 2011

The good news is that the hedge fund industry is about to surpass its high water mark of roughly $2 billion in assets sometime during 2011, reports the Financial Times. The bad news is that the turmoil of the past two years has left the fund industry permanently scarred. Investors, particularly the large institutional investors [...]

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Getting Your Money’s Worth from Hedge Fund Attorneys

March 2, 2011

Let’s be clear about what you’re getting from when you hire a hedge fund attorney: somebody to write your offering memo. Other miscellaneous legal matters always come up, but that’s basically it. It’s boilerplate stuff. Lawyers “play a somewhat lesser role than some of the other key service providers in the success of the hedge [...]

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How to Assemble Your Hedge Fund Team

January 27, 2011

Starting a hedge fund is the ultimate small business launch: low barriers to entry, loose regulation and, if you know what you’re doing, transcendent profitability. But, like any other entrepreneur, the fledgling hedge fund manager needs to understand how and when to bring in the pros. Everybody has skill gaps. Nobody can be in two [...]

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Hedge Fund Marketing and Prime Brokers

December 20, 2010

Until recently, hedge funds that lacked the resources to hire their own marketing teams often relied on small, independent third-party hedge fund marketing companies to introduce them to big investors. But that’s changing rapidly, according to a recent article in Investment & Pensions Europe. In the last few years, large prime brokers are muscling into [...]

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Starting a Hedge Fund – Determine Your Investment Strategy

November 30, 2010

So you are starting a hedge fund. You’ve just thought up a cool fund name, filed your LLC paperwork, asked your rich uncle for some seed money and had business cards printed up saying you’re the president and chief investment officer of your very own hedge fund. Congratulations. But you’ll probably be back on Merrill’s [...]

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