If you run a hedge fund, what are your most critical issues?

H

hanneswas

Hi, I'm addressing here people, who run their own (startup) hedge fund.

What are the most critical issues you are facing today?
* Finding allocators?
* Some technology issues related to software development?
* Marketing?
* Strategy development? (Entries, risk management, etc)
* Etc...
 
Sorry, can't help yet but am interested in the topic.
Can you give a basic example for such a (startup) hedge fund?
Is this a private hedge fund or a listed public one?
Is "hedge" meant literally or just for marketing purposes?
 
I would rank competing for talent at the top, probably ahead of strategy development, then finding allocators.

Even if you have a streak of amazing performance out of the gate and an endless queue of allocators on the waitlist for your capacity, you run the risk that you're subsidizing training and exploration costs for your competitors.

The recruiters will circle you like vultures. Some will refer you candidates and then try to poach from you, at the same time. The incumbents are ruthless and won't hesitate to throw more resources.

While you're busy fighting myriad problems (strategy development, regulatory, compliance frictions, investor relations etc.), if you want a sustainable business, you will have to develop a robust training program to replace the inevitable exodus of your top junior PMs when success gives them the ambition to spin out and start their own. And not many traders are good businessmen who also happen to be good at training talent.
 
rkr said:
I would rank competing for talent at the top, probably ahead of strategy development, then finding allocators.

Even if you have a streak of amazing performance out of the gate and an endless queue of allocators on the waitlist for your capacity, you run the risk that you're subsidizing training and exploration costs for your competitors.

The recruiters will circle you like vultures. Some will refer you candidates and then try to poach from you, at the same time. The incumbents are ruthless and won't hesitate to throw more resources.

While you're busy fighting myriad problems (strategy development, regulatory, compliance frictions, investor relations etc.), if you want a sustainable business, you will have to develop a robust training program to replace the inevitable exodus of your top junior PMs when success gives them the ambition to spin out and start their own. And not many traders are good businessmen who also happen to be good at training talent.
More...
That's a very nice statement! Thank you!

What role does algorithmic trading play for you? Couldn't it be an approach to fight these issues?
 
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