A Q&A with own Anna Stephenson was recently featured in HFM’s Special Reports on How To Start a Hedge Fund in Asia and Europe.
As in our last blog post, Anna covered some of the critical issues that new hedge fund managers have to contend with when setting up a new fund.
In addition to the items that we covered last time, here are two more things that you might not know you don’t know!
1. Do you know how to select a service provider?
You might think that the right thing to do as you start is to select the cheapest provider who seems to offer what you want. But this can be a short-term solution that creates a long-term problem… Make sure you know what you need and write it down. Ensure the service providers you look at (not too few and not too many) can already offer that functionality in your markets. And when you do look at the price, make sure you’re comparing all the costs – there may be hidden extras, for example, for additional connectivity, and you need to flush those out upfront so that you can compare like with like.
2. Do you understand what happens “after the trade”?
You might be a portfolio manager or trader who has spent their career specializing in the front office and left the next steps to others. But in a small team, the more understanding everyone has of the roles that others are performing; the more resilient the team will be – you will need to cover for each other, pitch in to help out, and foster a healthy respect for everyone’s contribution. And the more educated you are, the better business decisions you’ll make for your firm as a whole.
One of the benefits of taking the Henley Executive Hedge Fund Program is the access students, and alumni get to the practical wisdom of industry practitioners. Even if you don’t know, they do! In our next blog post, we’ll feature some experienced professionals who have contributed to our popular webinar-based Speaker Series…
You can read the HFM feature here.