Summary
This guide outlines the essential steps for launching a hedge fund, emphasizing the importance of establishing a solid strategic, financial, operational, and legal foundation before raising capital and trading. It details the necessity of creating a comprehensive business plan that defines the investment strategy and differentiates the firm from competitors. Additionally, the guide discusses the importance of having legal counsel and an accountant to determine the legal and tax structure, along with the need to line up banks, prime brokers, and custodians. It also highlights the significance of identifying compliance requirements, preparing governing documents, and documenting policies and procedures. The guide emphasizes the need to create legal entities for accurate accounting and reporting. Furthermore, it describes the growing trend of utilizing managed services to streamline operations and the importance of a modern technology infrastructure that meets the needs of front-, middle-, and back-office operations.
