Description
Book SynopsisHelpful, Accessible Guidance for Budding Hedge Funds So You Want to Start a Hedge Fund provides critical lessons and thoughtful insights to those trying to decipher the industry, as well as those seeking to invest in the next generation of high performers.
Table of ContentsForeword xi
Acknowledgments xv
Introduction xix
1 The Lessons 1
Lessons for Managers 2
Lessons for Allocators 4
2 So You Want to Start a Hedge Fund? 7
3 Attracting Capital 11
Signals of Success 12
A Classic Chicken-and-Egg Problem 30
Investment Funds are Sold, Not Bought (Just Don’t Tell the Buyers) 43
Leveraging the Buzz 49
Riding the Wave 55
Building a Great Business 60
4 Team 65
Your Single Best Investment 66
The Best a Man Can Get 73
The Two-Headed Portfolio Manager Monster 76
Where Do Nice Guys Finish? 83
Turnover: Don’t Knock It Till You Try It 86
Pacing Growth 91
5 Investment Strategy 97
Finding True North 97
Best Foot Forward, With Both Feet 100
The Tug of War between Flexibility and Style Drift 106
Stick to Your Knitting 117
Building Blocks of Process 123
6 Investment Performance 129
A Slave to Monthly Numbers 130
Sustaining Performance 134
Reaching for Return 138
The Role of Luck 144
The Best Month in a Manager’s Career 150
7 So You Want to Invest in a Start-Up Hedge Fund? 153
Influencing Outcomes 154
Terms 158
Preparing for Bumps in the Road 164
Heed the Stop Sign 167
Crossing the Velvet Rope 173
Making Decisions 177
8 Parting Thoughts 183
Author’s Disclaimer 189
About the Author 193
Notes 197
Index 205
