Over the last week or so I must admit that I haven’t been paying much attention to the hedge fund world, as I have been singularly focused on my beloved Red Sox. Once again, the Beantowners are the American League champs and are up one game to none in the Fall Classic.
As for hedge funds well, there is quite a bit of good stuff going on – fund launches are ticking up and assets continue to flow into the industry. One thing that investors can learn from the recent success of the Red Sox is that when you stick to the fundamentals — i.e, strong management — you can achieve great things. Going from worst to first in the AL is quite an accomplishment, and if they win the whole thing, well — once again one for the ages.
When launching a hedge fund, it’s is important to dot all the i’s and cross all the t’s right from the start. Building a business from scratch is hard enough, with countless obstacles to success. Skimping on service providers is one thing you should not do. Whenever I am asked about how to pick a lawyer, an accountant, or a broker, I always reply: Find one with experience. They know what they are doing and you won’t be paying them to learn.
It’s important to work with professionals. Rookies can do the job sometimes, but those with experience can help them to do it better. This what John Henry and the rest of the owners of the Red Sox realized in the off-season and it is what you should realize before you hire a lawyer or accountant or open an account at a brokerage firm. Make sure the people you are working with have experience, knowledge and expertise. It may cost you more up front, but it will save you quite a bit down the road.
The new Operations for Alternatives community is open and attracting members a record pace because the inudstry is thirsty for centralized location for thought leadership materials. You can register for free by clicking here. There is quite a bit of good informantion there -the content is expanding daily. You will alos find information about the pop-up event that is taking place in March at PGA National.
The next HEDGEAnswers Conference Call is just around the corner register here and get in on the discussion.
Until next week, I have but one thing to say: Go Sox!