Whilst in London recently I attended an event focused on
start-up hedge fund managers. Although the number of launches in
2016 was down on recent years, those at the cutting edge in London
at least, are reporting an uptick in the number of funds launched
towards the end of the year or which are otherwise in the pipeline.
Opening discussions on the prospects for sector growth quickly
turned to discussions on the cause of the lower numbers and the
challenges facing new start-ups.
Prospective hedge fund managers face a myriad of choices when
establishing a new hedge fund operation. This article highlights
some of the key areas for consideration.
Internal operations
A good starting point is to consider the expectations of the
target investor base. Is it necessary to build an institutional
grade infrastructure with significant numbers of permanent staff,
dedicated IT systems, prestigious office premises and the like or
is a more modest operation sufficient? Whilst the
