馃攳
Start a Hedge Fund | How to Start a Hedge Fund - YouTube
Channel: unknown
[0]
louis richard wilson and today we'll be
[1]
talking about hedge fund startups
[3]
investment fund startups and emerging
[5]
managers specifically we're going to
[7]
talk about common mistakes made by them
[10]
but then also some marketing and sales
[12]
best practices which should help you if
[15]
you are an emerging manager a statistic
[18]
came out in 2005 showing that over 50
[20]
percent of hedge fund failures were due
[22]
to business and operational reasons and
[25]
not due to poor performance I think most
[28]
people outside the industry and most
[30]
investors don't realize that and having
[33]
a sound business is not only something
[35]
that investors are starting to
[37]
scrutinize more but it's also something
[39]
that if you're running a fund obviously
[41]
it should be one of your top concerns
[42]
since it's the number one reason for
[45]
funds failing in the past to help
[48]
mitigate some of the the risk of running
[51]
your business as an investment fund
[53]
there are a few things you can do one
[55]
would highly recommend that you download
[58]
a business plan template and complete a
[61]
full business plan for your hedge fund
[64]
this should include your marketing
[66]
operations hiring practices your mission
[69]
your goals and your growth strategy as
[72]
your as your firm expands if you meet
[75]
with institutional consultants as your
[76]
fund grows they'll ask the types of
[78]
questions that should be included in
[80]
this business plan so really completing
[82]
a really solid business plan is going to
[84]
help you complete due diligence
[85]
questionnaires and help you complete due
[88]
diligence phone calls down the
[91]
next we definitely recommend putting
[93]
some formal hiring and contract
[98]
templates in place for your firm you
[100]
should meet with an attorney or there
[102]
are some websites that provide kind of
[104]
template based legal contracts if you're
[107]
looking for something simple such as an
[109]
employer contract or a confidentiality
[111]
contract legalzoom.com has a whole bunch
[115]
of free resources that that we have used
[118]
in the past and it can count it can
[121]
lower your overall legal costs if you do
[123]
have something such as a fun formation
[124]
that you're looking at doing something
[126]
more complicated or if you want a hedge
[128]
fund attorney to review something that
[129]
you've gotten from a website such as
[131]
this you could go to our service
[134]
provider directory the biggest one we
[136]
have is on hedge fund blogger.com if you
[139]
go to service provider directory go down
[142]
to hedge fund attorney here are two
[146]
attorneys that you could meet with or
[149]
speak to over the phone
[151]
blah Maulik and Brent Gillette I've met
[154]
with both in person and referred over 50
[156]
funds to them in the past and I've never
[158]
got any negative feedback at all from
[161]
professionals that that work with them
[163]
so I highly suggest meeting with an
[164]
attorney if you're forming the fund if
[166]
you just formed a fund if you haven't
[167]
yet you should get their advice it could
[169]
save you much more money than you spend
[171]
in the long run
[173]
next to mitigate your business risk
[176]
further and running a fund I'd suggest
[178]
using some sort of business process
[180]
analysis tool or mind mapping tool if
[183]
you're not familiar with this it's very
[184]
simple here's an example of one here's
[189]
for a website that we're launching fund
[191]
marketing tools you can see you can
[194]
organize one idea and then you have
[196]
child ideas that come off of that so for
[199]
your hedge fund business you could
[201]
manage the different parts of your
[203]
business and make it visual for either
[206]
the management team or everyone in your
[208]
firm exactly what you're spending your
[210]
time on what different resources your
[212]
firm must constantly be building what
[214]
types of expertise you're building
[216]
perhaps what types of processes you're
[219]
working like getting in place this can
[221]
be a really good visual tool for your
[224]
firm to use if you want to create one of
[227]
these for yourself it is free to use the
[230]
website is vu bbl us and you very easily
[235]
can show you real quick here once you
[239]
log in and create your own account you
[242]
choose start a new sheet and after you
[247]
start a new one it's very simple you
[249]
start with one central idea and then you
[252]
just grow it from there and you can
[255]
expand and describe your whole business
[257]
here very quickly so here in the middle
[259]
we're gonna put you know say Wilson
[264]
Capital Management okay
[269]
now this might be a business plan for
[272]
yourself just a visualization for
[274]
yourself and managing your fund next
[276]
year you could put marketing and sales
[281]
down here you could put employee team
[287]
management
[292]
over here you could put portfolio
[295]
management you can see within each of
[299]
these areas that there might be five or
[301]
six tasks that here you're having to
[303]
complete either every day or over the
[305]
next quarter for marketing and sales you
[307]
might decide just for planning purposes
[310]
that you want to break this up and you
[316]
might allocate equal amounts of time to
[320]
these three different types of marketing
[323]
Nick marketing to high net worth
[325]
individuals marketing to family and
[327]
friends and then perhaps marketing to
[331]
local financial advisors usually I like
[337]
to make the there different levels I
[339]
like to make them some sort of different
[341]
teller make it easier to read
[345]
you can see here you can manage your
[346]
whole business and within just 20 30
[348]
minutes of using this website you can
[350]
have everything very visually laid out
[351]
it makes it easy to train somebody new
[353]
it makes it easy to see what challenges
[356]
or tasks you have in front of you and it
[357]
makes sure that you keep a 10,000 foot
[359]
view of your business that you don't
[361]
forget that on top of managing the
[363]
portfolio and trying to raise capital
[365]
you're also running a business and they
[367]
need to be there needs to be formal
[369]
business processes in place so that you
[371]
can manage those and improve those over
[373]
time ok so now onto some marketing and
[377]
sales best practices most hedge funds do
[382]
start with marketing friends and family
[385]
they look at co-workers they look at
[387]
people that have known them for 10 20
[390]
years and they know they're trading
[391]
abilities they know their portfolio
[392]
management abilities this is the way
[393]
that most people initially raise capital
[396]
by friends this can need pen this can
[398]
mean past co-workers or peers in the
[401]
industry that you know many times
[403]
traders will help fund other traders who
[406]
go out and start their own funds another
[409]
form a raising capital is financial
[411]
advisors going after financial advisors
[413]
that have high net worth individuals as
[416]
clients can be an effective way
[417]
especially locally if you can meet face
[419]
to face to raise capital and then the
[423]
next step beyond that would be immediate
[424]
with wealth management firms we can
[427]
create a little bubble here for that but
[428]
meeting with larger wealth management
[430]
firms that have mini clients with high
[434]
net worth status that could possibly
[437]
invest in your fund and as your fun
[440]
grows in size then you can kind of move
[442]
down the totem pole or move up the totem
[444]
pole I guess to the more sophisticated
[446]
less retail investors up through wealth
[449]
management to family offices
[450]
institutional consultants pension funds
[453]
endowments and foundations one thing to
[456]
remember in a common mistake that I see
[458]
a lot of hedge fund startups making as
[460]
they describe their strategy as well
[463]
diversified on
[465]
with the general markets you know they
[467]
have a very you know in-depth experience
[470]
team the problem with that is that
[472]
professionals like myself and especially
[474]
investors who probably get twice the
[476]
number of hedge fund marketing materials
[478]
than I do see the same thing over and
[480]
over again and everybody looks the same
[482]
so the trick is to come up with a unique
[485]
selling proposition and not just a
[488]
selling proposition and to make it truly
[490]
unique you need to figure out exactly
[491]
why you did start your fund what skills
[493]
you guys have on your team that combined
[496]
create something unique or what unique
[499]
insight or strategic information
[501]
advantage your firm has over all of your
[504]
competitors because if it doesn't look
[505]
unique then it probably won't get read
[507]
at all I recently gave a speech in
[511]
Florida on hedge fund marketing best
[513]
practices and this was either Marcus
[516]
Evans conference in Boca Raton and
[519]
during that conference during that
[521]
speech I went over the five best
[522]
practices that hedge funds can use to
[525]
market their fund one of them here is
[528]
the materials focus on the four factors
[531]
of hedge fund marketing so what I
[533]
suggest here is that the four most
[535]
important things while marketing are
[537]
pedigree building your team into a high
[540]
quality highly experienced team unique
[543]
to your business process and the product
[546]
you're offering getting your
[548]
presentation quality up so having a
[550]
professional logo having professional
[551]
market materials having an investment
[554]
process that is described in a way that
[556]
it presents a unique selling proposition
[558]
and not just a selling proposition and
[560]
then the last thing obviously is
[562]
managing portfolio risk and having that
[564]
track record of managing risk within
[566]
your portfolio over the long term so I
[568]
really think that those are the four
[570]
things that investors really look for
[572]
most pedigree presentation quality
[574]
process and the unique selling
[576]
proposition created by that investment
[577]
process and then portfolio risk
[579]
management so that pretty much wraps up
[582]
you know I talked today on hedge fund
[584]
startups and if you're looking for more
[587]
information
[589]
and starting a hedge fund or running a
[591]
small investment fund please see hedge
[594]
fund startup guru calm thank you
Most Recent Videos:
You can go back to the homepage right here: Homepage