How to Successfully Launch and Operate a Hedge Fund
Long considered the exclusive realm of the rich and privileged, in recent years hedge funds have become a fixture of investment portfolios of all sizes. The industry is stronger than ever and primed for even greater growth, making now the perfect time to set up your own fund. The Fundamentals of Hedge Fund Management, Second Edition shows you how, bringing together everything you need to know to build, maintain, and reap the rewards of a high–performance hedge fund business.
With over a decade of international experience consulting on hedge funds, author Daniel Strachman knows exactly what it takes to succeed in the industry. Packed with essential information on how to make good decisions when building and managing a fund, how to develop a marketing strategy that will help you raise assets, how to create an infrastructure to support your business, and much more, this is the only resource you need to launch and grow a successful hedge fund business, for yourself or your clients.
Fully revised and updated to address recent developments, the book includes new and expanded coverage of how the credit crisis, legislation, fraud, technology, investor demand, global markets, and the economic landscape have affected hedge funds, giving you an up–to–date overview of the state of the industry, as well as information on what lies ahead. Written in a straightforward and accessible style and incorporating real–world examples, this second edition explains exactly what you need to do to build a hedge fund that will create and preserve wealth.
The hedge fund industry is changing fast. Now more than ever, new and profitable opportunities are available to investors regardless of background. To make the most of them, you need a solid understanding of how the industry operatesand how to make it work for you. The Fundamentals of Hedge Fund Management, Second Edition does just that, providing you with the tools and techniques you need to start and sustain a hedge fund of your own.
CHAPTER 1 The Hedge Fund Industry 1
CHAPTER 2 The Service Providers 23
CHAPTER 3 Hedge Fund Structures 41
CHAPTER 4 Hedge Fund Accounting 59
CHAPTER 5 ERISA, UBTI, and Offshore Funds 77
CHAPTER 6 Marketing and Capital Raising 91
CHAPTER 7 Why the Back Office Matters 113
CHAPTER 8 The Launch 127
CHAPTER 9 Perception versus Reality 141
APPENDIX A Hedge Fund Litigation 153
APPENDIX B Examples of Hedge Fund Structures 189
Resource Guide 199
About the Author 217
DANIEL A. STRACHMAN is an expert in all aspects of investment management with more than sixteen years of Wall Street experience. He is nationally recognized as a strategist, futurist, and commentator on Wall Street, the economy, and investment strategy. Daniel specializes in providing strategic advice and counsel to companies that want to expand and prosper in both good and bad economic times. He has worked in product development, marketing, and sales focused in and around the money management industry. He is the author of several other books, including The Long and Short of Hedge Funds, Getting Started in Hedge Funds, Julian Robertson, and Essential Stock Picking Strategies, all published by Wiley.