This Hedgeweek Special Report, which features contributions from some of the US hedge fund industry’s top service providers, is an indispensable guide for emerging hedge fund managers
The 'US Hedge Fund Startup Guide 2020' special report comprises eight separate articles listed below, these can be read individually or as a sequence.
By A Paris – “A lack of clarity could put the brakes on any journey to success” – these words, uttered by behavioural scientist Steve Maraboli, offer concise advice for any aspiring hedge fund manager. Although the road to success is far from straightforward, startup hedge funds need to have clear objectives and a definite, coherent understanding of who they are as investors and more importantly, who they want to be.
By Ian Gobin (pictured) & Philip Graham – 2020 is a presidential election year in the US. Economists generally forecast a period leading up to it which avoids any major US financial market upsets. However, this time it’s building up to be anything other than a normal election year.
Despite hedge funds having a good year in 2019, returning over 9 per cent on average, the task of launching a hedge fund remains a challenge.
Smart, repeatable and “hands off” technology plays an ever-growing role in the delivery of fund administration services. Two primary drivers of a fund administrator’s success are automation and straight-through processing (“STP”).
Every day we wake up to news about trade wars, terrorism, natural disasters and major political events that all greatly affect our personal lives and the investment world. There are also serious issues facing the fund governance industry which cannot be avoided but can be managed by the funds industry. Change cannot be escaped and within the funds industry, change must occur sooner rather than later for it to thrive.
Emerging hedge fund managers looking to succeed in the industry should consider what is most important to their firm and the vision they have for their fund. Then, with this set, the fund should partner with a managed service provider to build the technology infrastructure needed to secure it. Hedge funds can then find the technology components that best suit their business rather than pouring time and money into a complex structure which may not fit their purpose.
When considering hedge funds to invest in, asset allocators place a high value on controls around cyber security, information security and compliance. Therefore, startup hedge funds need to ensure they not only deliver on their investment promises but also that the technology systems underpinning their business are robust.
By Frank Napolitani (pictured), Constellation Advisors – Given today’s challenging capital raising environment, it is more important than ever to ensure that key, non-investment functions of an investment management firm are being addressed and managed properly. Operational Due Diligence (ODD) plays an integral role in the allocation of institutional capital.