Lions share industry wisdom
Episode two of Hedge Fund Lions’ Den has the three industry heavyweights sharing their collective knowledge, expertise and experience about starting hedge funds and what can go wrong
Hedge Fund Lions' Den continues with the three lions giving advice on a wide range of topics relevant to start-up hedge funds, as well as those established and seeking capital.
Andrew McCaffery, global head of hedge funds at Aberdeen Asset Management; Luke Ellis, president of Man Group; and the godfather of the hedge fund industry, Stanley Fink, now Lord Fink and chief executive of ISAM, deliver the gems of wisdom.
The advice given to emerging managers should help attract institutional investors. "Focus on what the special skill is that they bring to the business," advises McCaffery. "It is important that they get across to investors the degree to which they are motivated and committed. It is very important to find that they are thinking through to the business strategy, not just when they open the doors, but what they will be doing in three, six, 12 months down the road to allow them to really succeed and bring the expectations they have put on the table to achieve for investors."
On the future of the hedge fund industry, Fink says: "I think the future of the hedge fund industry is going to be quite interesting. My guess is that there will be a slight bifurcation between managers."
He also cautions against too much simulation of performance. "One year of live trading is more interesting than 10 years of simulation."
Ellis cautions against being too eager for success. "People think that it is going to be easy to start a fund and get rich. But the answer is if the rewards are good, it should be hard. Starting a hedge fund is a big entrepreneurial stop," he says. "[Many] think they can just turn up and start trading and it will all be good. That is not how the real world is anymore."
Episode three, which airs on December 11, is crunch time for the emerging managers taking part in the series as they face the lions and have just two minutes to pitch their fund ideas.
Watch episode 2 of Hedge Fund Lions' Den
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Hedge funds
JP Morgan warns hedge funds to expect intraday margin calls
US bank may demand variation margin ‘up to seven’ times a day after Archegos default
Alternative markets give edge to Florin Court strategy
By concentrating on exotic and alternative markets, Florin Court Capital Fund has sidestepped overcrowding and correlation to the main trend following commodity trading advisers, offering investors a diversified alternative to the standard systemic macro…
Global macro views combine with quantitative models to produce consistent returns
The team behind River and Mercantile Group’s global macro strategy team operates under two key principles: that macro is the most important aspect of any investment decision and that decision-making should incorporate both systematic and discretionary…
On the offensive – Seeking a new edge, buy-side invests in portfolio and risk analytics
A fast-moving, headstrong hedge fund – hit by rare losses after a black swan event touched on an overweight country exposure – ponders adding fresh quantitative expertise. Much to traders’ chagrin, the chief investment officer and chief operating officer…
Esma backtracks on account segregation
Status quo protected for rehypothecation of collateral in tri-party, securities lending and prime brokerage
Redemptions focused within strategies suffering losses in 2016
Redemptions focused within strategies suffering losses in 2016
Hedge fund redemptions a dismal end to a bad year
Managed futures funds saw big inflows in 2016, but left investors disappointed
Larger funds are net losers as outflows continue
Managed futures funds have seen biggest redemptions for three years