Startup hedge funds should undergo advance planning

folarin okunola

June 1, 2015 12:36 PM

Evidence indicates that general partners concentrate energies and resources on getting their hedge fund running effectively.

If managed properly, hedge funds can bring huge returns.

Undoubtedly, personal wealth creation is a measure of hedge fund success for general partners.

Also, performance of any given investment is definitely essential to asset accumulation efforts, and is also vital in promoting fund stability.

In addition, a track record of solid returns remains extremely important to the ability to raise investment capital.

At birth, evidence indicates that general partners concentrate energies and resources on getting their hedge fund running effectively, investing monies, and raising more capital.

With general partners solely focused on wealth creation through investment management, many new hedge funds do not initially address – or even consider – advanced planning elements that can substantially enhance or diminish personal and family wealth.

According to Alan S. Kufeld, partner at Flynn Family Office (FFO), “Research with 188 general partners in start-up hedge funds, where the average assets under management was US$63.2 million, suggests that most new managers are largely overlooking significant opportunities.”

Long story short, just getting your investment and the hedge fund running effectively and making you more money isn't all there is to it.

Reviewing the numbers and therefore remodelling how the investment functions and translates to the respondents is very key, else an even greater amount of potential capital could be lost.

folarin okunola