From the category archives:

Starting a Hedge Fund

Goldman Sachs to Help Launch Hedge Funds

May 30, 2011

Goldman Sachs is muscling into an area dominated by Blackstone Group LP, namely, bankrolling those who seek to start a hedge fund. According to a story from Bloomberg, Goldman has been trying to attract investors for a “seeder” fund, which provides startup capital to new hedge funds in return for percentage of their fees. This [...]

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SAC Launching New Quant Fund

May 23, 2011

The empire founded by Steven Cohen, SAC Capital Management LLC, is reportedly launching a new hedge fund specializing in quantitative trading. It’s the first new fund for the firm in six years. SAC apparently already has “20 teams” of quant traders ready to manage the new fund. Quant traders buy and sell stocks based on [...]

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Bodybuilder Launches Brainy Hedge Fund

May 9, 2011

To say that Sonia Schulenburg is an overachiever is a bit of an understatement. Educated in Mexico City, she moved to Edinburgh, Scotland, where she competed as a bodybuilder while earning her doctorate degree in artificial intelligence. Now she’s starting a new hedge fund based on a computer-driven model that aims to instantly adapt to changing market conditions. [...]

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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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Hedge Fund Technology Moves to the Clouds

March 30, 2011

Cloud computing is attracting a lot of attention these days based on the operational, efficiency and cost-saving benefits these services can provide.  Rather than purchasing costly equipment, cloud services allowing fund managers to outsource hedge fund technology infrastructure or applications to a third-party who manages and maintains everything.  Cloud services also allow firms to only [...]

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Prop Traders Face Headwinds in Starting Hedge Funds

March 21, 2011

As the Volcker rule forces many banks to wind down their proprietary trading desks, more and more in-house traders are viewing this as an opportunity to start their own hedge funds. Not so fast, reports Reuters. Traders may be inspired by the success of Goldman Sachs stars such as Pierre-Henri Flamand and Morgan Sze, who [...]

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Hedge Fund Technology for a Start Up Fund

March 9, 2011

Hedge fund technology is an integral part of operations and something that must not be overlooked during the launch process. It is important that a hedge fund manager define the firm’s needs and then map and budget technology accordingly. One area of caution when it comes to technology is looking for the “perfect” solution, as [...]

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The Details of Launching A Hedge Fund

March 7, 2011

There are many talented people out there who are passionate about investing and manage money during their spare time from their “real” jobs, says Amit Chokshi of GuruFocus. Many are blogging on his and other sites. Still others may dream of hanging out their own shingle and starting a hedge fund. But it takes more [...]

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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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