So you want to start your own hedge fund? Top tips from hedge fund seeders

Prohedge’s Parin Shah writes: The biggest challenge when starting up a hedge fund is capital raising. This year marked a period where fewer seeding deals than ever before were undertaken. At the Bloomberg Hedge Fund Start-Up Conference, industry experts reveal that they really have to see a comprehensive package from the perspective of strategy and due diligence before they can even consider allocating money into a new venture. As Pierre-Emmanuel Crama of Signet Capital Management stated “we look for institutional quality with managers where we can also provide support.”

A good way for hedge fund start-ups to evaluate their own “institutional quality” is to look at the AIMA Due Diligence questionnaire and simply mark which issues you can address at the moment and which you cannot, advises Tushar Patel of HFIM. This represents a great way to get into the mindset of allocators who have a fiduciary duty. “Remember this is starting a business from scratch. You can have the best idea but there needs to be infrastructure to take it somewhere,” says Patel….

There’s more good stuff at http://www.prohedge.co.uk/so-you-want-to-start-your-own-hedge-fund-top-tips-from-hedge-fund-seeders/