Since 2008, HF results have been lackluster — to say the least
Expect some tough issues and complex solutions
Whether it’s because of the Volker Rule, deflated bonuses or industry consolidation, lift-outs of proprietary trading units and hedge fund management teams are in the air. They are certainly cheaper, faster and more surgical ways of acquiring top talent than full-blown mergers or acquisitions.
Your hedge fund ‘deck’ must be balanced as well as compelling
To attract capital, marketing specialists tell hedge fund managers they need to show prospective investors how their investment strategies will enhance risk-adjusted returns (the so-called “value proposition”), perform effectively under all market conditions (the risk management requirement) and, most importantly, outperform their competition (the “edge”).
Achieving the investment returns isn’t enough . . .
All of you portfolio managers, proprietary traders and research analysts accepting positions with new firms or striking out on your own should know that your track records are not automatically portable to your new situations.
Trading equity for growth
What will it cost you to launch a hedge fund with seed capital from an institutional investor or to get a huge infusion later from an acceleration capital provider?
The vast majority of emerging hedge fund managers start their funds with their own seed capital or with start-up investments from friends and family.