Starting a Hedge Fund is Easy…Not
Are you thinking of starting a hedge fund? Many people think it’s simply a matter of
having a good portfolio management strategy, finding someone rich to invest in you,
getting a Bloomberg terminal, and getting on with it…
The reality is – you’re an Entrepreneur
A hedge fund is a regulated pooled investment vehicle, which generally includes at least
two companies – one onshore in the location where you live, and one offshore in a
place like the Cayman Islands. You will have a responsibility to manage both of those
legal entities, to a professional standard. Being an entrepreneur means you’re in charge
of everything, and that means everything.
Four Things You May Not Have Thought Of
Do you know how to put a budget together for the first three years? Do
you understand all of the costs you will need to pay, including two sets of lawyers,
two accountants, two auditors, market data feeds, multiple types of insurance? Can
you model the sources of your revenue, and its timing? Do you know how to do
cash-flow forecasting, to ensure you don’t go under through lack of available cash?
Do you know your EMS from your OMS from your PMS? Do you
understand the requirements to have an IBOR or proof of Best Execution? How
about the data feed you need to ensure that you don’t miss corporate actions
impacting your holdings? And can you reconcile automatically to your Prime Broker,
Fund Administrator and/or Depositary?
3. Human Resources
Have you ever run a team before? How will you manage to hire
the right people for your company? From the analysts to the operations staff, do you
understand how to manage and motivate them? How about your legal labour law
obligations, like pension contributions, workplace insurance, and sexual harassment
4. Investor Relations
Are you planning to take money from anyone who offers it to you? How do you know that
you are not helping them to do money laundering? Do you know how to file a suspicious
activity report, or when you should do so? What will you do if one of your investors dies?
The Henley Executive Hedge Fund Programme features industry specialists covering
the practical topics you need to know in order to have the best chance of making it in the
hedge funds industry.
Sign up now!
Learn From Experience
and let us help you to achieve your goals.