Author Archives: Richard C. Wilson

About Richard C. Wilson

Richard Wilson is a hedge fund consultant, founder of the Hedge Fund Group (HFG) and runs the Hedge Fund Consultant Blog.

Hedge Fund Risk Management

When trying to maximize absolute returns, the importance of assessing and mitigating risk shouldn’t be underestimated. Some memorable examples like LTCM and Tiger Fund not only show how heavy losses can be for some participants of the hedge fund industry, but also reinforce the perception that a good record of high absolute returns can mean absolutely nothing in an environment […]

Hedge Fund Platforms

There has been a half dozen articles in the last year (2008) about private hedge fund platforms being setup or launched by firms such as the Man Group. There are really two types of hedge fund platforms being discussed. One allows hedge funds to trade almost any type of security through one portal and the other is the attempt to […]

Hedge Fund Research

The hedge fund industry is intensively competitive. Depending on who you ask or who you cite there are now between 10,000 and 15,000 hedge funds now in the industry. This rivalry comes to a head while hedge funds compete for large investments by institutional investors. Institutional investors spend months analyzing the investment processes and information/research advantages and resources that hedge […]

Hedge Fund Due Diligence

New hedge funds are launched daily, which is constantly increasing the importance of determining which hedge funds are appropriate for you or your firm to invest in becomes increasingly important. Every person or company is going to have different investment horizons, risk tolerances, strategy preferences, etc. so it is usually more valuable to know the basics of how to evaluate […]

Collapse of the Hedge Fund – Survival of the Fittest

In 1859, Charles Darwin introduced his theory on “On the origin of species” through this now famous preamble: As many more individuals of each species are born than can possibly survive; and as, consequently, there is a frequently recurring struggle for existence, it follows that any being, if it vary however slightly in any manner profitable to itself, under the […]

Dubai Hedge Fund and Private Equity Activity Trend

While Dubai is a tourism hotbed and most well known for its modern architecture, indoor ski slopes and record numbers of tourists it is fast positioning itself as the financial center for northern Africa and the middle east as a whole. There are over 400 investment firms now based in or that have plans to build offices in the Dubai […]

How Much Money is Invested in Hedge Funds?

Hedge Funds closed 2007 with over $2.7 Trillion in total assets under management. In 2007 alone hedge fund assets have risen $500B. $50B of that $337B came from emerging market hedge funds growth with most of those assets being allocated to Chinese and Brazilian hedge fund managers. These types of statistics are important to keep in mind, for if in […]

What are some Emerging Investment Strategies for Hedge Funds?

Risk Arbitrage Risk arbitrage hedge fund strategies usually involve purchasing stocks of companies that are likely takeover targets, while assuming short positions in the would-be acquiring companies. Risk arbitrage hedge fund managers can employ an event-driven investment strategy or merger arbitrage investment strategy, seeking situations such as hostile takeovers, mergers and leveraged buyouts. Such funds typically experience moderate amounts of […]

What are Family Offices?

Family offices are exclusive wealth management firms which primarily only accept clients with at least $10-$25M in assets.  Although family offices typically manage finances for a smaller pool of clients, they are able to provide services in a wide variety of areas such as comprehensive tax and estate planning, charitable giving, foundations, budgeting, and traditional wealth management.  Family offices traditionally […]

Hedge Fund Ethics

In the hedge fund industry you have one name and one reputation. If you ruin that, you could have influential people in the industry refusing to do business with you for 15-20 years after their initial opinion is formed. In such a competitive, close vested industry where large profits can be made, the temptation to cut corners or look past […]

Top 10 Hedge Fund Myths

There are a lot of aspects about the hedge fund industry that would be hard or nearly impossible to learn by reading mainstream media sources on the subject. To help answer the question about who hedge fund managers are here is a list of what is not true. Top 10 Hedge Fund Myths Most hedge fund managers are billionaires Hedge […]

Hedge Fund Database Tips

Anyone who has the ability to successfully navigate the many channels of capital within the hedge fund industry is worth their weight in gold (and that’s rising every day). There are two major components of marketing and selling a hedge fund which each take constant attention and refining. Understand the DNA of the many distinct distribution channels open to hedge […]

Sovereign Wealth Funds

No longer to be ignored sovereign wealth funds seem to be popping up in the WSJ as often as Ipod advertisements and pink slips for CEOs. These are pools of fully discretionary capital that are controlled by the government an often times nothing more than a small financial committee of close political allies to the president or leader of the […]