While browsing through my hedge fund news aggregator this morning, this story on how to set up a hedge fund caught my eye.
With their tongue firmly in their cheek, the guardian lists the following steps to hedge fund success.
- Chose a name
- Get a brass plaque in the Cayman Islands
- Set your fees
- Raise some money
- Rent an office
- Recruit some staff
- Choose an approach
- Adopt a strategy
- Accessorize
- Hope for the best
While this article explains the basics of how Hedge Funds work to your average hedge fund newbie, in practice a much different approach is usually taken. My 6-step list would be:
- Select a Strategy
- Generate a track record (between 6 -18 months of strategy trading)
- Select your Administration Team & get your track record Audited
- Prepare your PPM and Offering Documents
- Prepare Marketing Material and a Website – I may be able to help you with that 😉
- Raise Money
I’ll admit my list isn’t as funny as Andrew Clark’s, but if you start hedge fund without proper offering documents and administration team (neither of which were touched on in the article) you’re very likely to get into trouble very quickly.
About Aaron Wormus
Aaron Wormus works as the Managing Director of Website Creation at HedgeCo Networks and has worked with HedgeCo since the end of 2004.
Prior to working with HedgeCo Networks, Aaron managed a private consulting firm based in Frankfurt, Germany. During this time he worked implementing back-end systems for clients ranging from telecommunications companies to mining companies and Silicon Valley software distributors.
Aaron Wormus is a published author who has studied Information Technology and Journalism in Finland. His written work has been published in various technology magazines, translated into 5 European languages, as well as published book. Aaron regularly speaks at PHP Programming conferences, and is involved in the organization of his local technology user group.
Setting up a Hedge Fund in 10 Simple Steps
While browsing through my hedge fund news aggregator this morning, this story on how to set up a hedge fund caught my eye.
With their tongue firmly in their cheek, the guardian lists the following steps to hedge fund success.
While this article explains the basics of how Hedge Funds work to your average hedge fund newbie, in practice a much different approach is usually taken. My 6-step list would be:
I’ll admit my list isn’t as funny as Andrew Clark’s, but if you start hedge fund without proper offering documents and administration team (neither of which were touched on in the article) you’re very likely to get into trouble very quickly.
About Aaron Wormus
Aaron Wormus works as the Managing Director of Website Creation at HedgeCo Networks and has worked with HedgeCo since the end of 2004. Prior to working with HedgeCo Networks, Aaron managed a private consulting firm based in Frankfurt, Germany. During this time he worked implementing back-end systems for clients ranging from telecommunications companies to mining companies and Silicon Valley software distributors. Aaron Wormus is a published author who has studied Information Technology and Journalism in Finland. His written work has been published in various technology magazines, translated into 5 European languages, as well as published book. Aaron regularly speaks at PHP Programming conferences, and is involved in the organization of his local technology user group.