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

Discussion in 'Prop Firms' started by hanneswas, Nov 2, 2021.

  1. 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...
  2. destriero


    * Don't shop your fantasy MT5 account.
  3. thecoder


    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?
  4. rkr


    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.
    jackfx, VPhantom, cobco and 2 others like this.
  5. Operations and technology stack.
  6. 2rosy


    they are always looking for $
  7. hanneswas


    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?
  8. hanneswas


    Can you improve here via outsourcing or hiring good software developers/computer scientists?
  9. newwurldmn


    Are you looking to start a hedge fund to trade 500:1 leverage at your bucket shop?
    murray t turtle and VPhantom like this.
  10. schizo


    Not to lose money. That's what hedging means (like you didn't already know?)
    #10     Nov 2, 2021
    Nobert and comagnum like this.