How NOT to Start Your Own Hedge Fund

August 29, 2007 |

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I have heard about these hedge fund “meet and greets” before, but this one sounded completely awful.  The Fourth Annual New York Hedge Fund Startup and Business Development Forum  (last year) sounds like a shopping mall for turn-key “solutions providers” hawking their wares with wanna be managers hoping to bump into a high net worth investor or two. Of course this forum was held at an upscale facility - Gotham Hall in NYC – a place meant to imbue the feeling of class and professionalism.  From the sound of it, Fortune reporter, Marcia Vickers, seemed anything but impressed. 

It also sounded like a complete waste of time and money — aside from sleazy — with some of the service providers offering up some less than honest tips on how to domicile your fund in the Caymans while hiring an auditor to reset your NAV after you’ve had a good quarter or two so others wouldn’t know you have been trading your own money instead of investors’.

Tip: If you are serious about starting a hedge fund, stay away from these one stop shopping trips to hedge fund land.  Do some research and you’ll quickly find out the worthy service providers from the scags.

Wink, Wink: High net worth types DON’T frequent these events!  They’re too busy making money.

Got any stories to share about these things?  I’d love to hear ‘em.

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