How do you start a hedge fund? The new era of hedge fund creation and operational management (Grant Thornton, Stonegate Capital Partners)

December 2011

KEYWORDS: Hedge Fund Launches, Domestic Hedge Funds, Off Shore Hedge Funds, Prime Brokerage, startup capital

Authors:

John McCorvey III
Yossi Jayinski
Brian Moore
Kunjan Mehta

Organizations:
  • Grant Thornton, Stonegate Capital Partners

Summary:

Until recently, starting or launching a hedge fund was a very expensive and overwhelming task requiring six months or longer to complete, while startup, infrastructure and operational costs ran well into the six-figure range.
The hedge fund manager, who is typically the portfolio manager and/or the head trader, has the core responsibility of managing and trading the fund’s proprietary strategy, which prior to the creation of the hedge fund is typically traded in the manager’s personal account.

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