The Hedge Fund Resource Network your No. 1 source for domestic & offshore fund formation, hedge fund website design, and hedge fund consulting.

Domestic Fund Formation It is a simple process to enter the hedge fund industry; practically anyone with $15k to $20k can start a hedge fund and forming a hedge fund gets easier every year.
Offshore Fund Formation An offshore hedge fund is simply a structure used by hedge fund managers as a way to attract offshore investors (non-U.S. citizens) or U.S. tax-exempt investors such as pension and endowment funds.
Hedge Fund Blog
Low cost or low risk?
Which is better for investors? Low cost or low risk? Low fee beta or high value alpha? Should you invest with dedicated, hard working highly skilled portfolio managers that reduce volatility OR in a no work, unskilled speculative fund that just tracks an unanalyzed basket of 500 stocks S&P happen to like, with no attention to valuation or risk? Which would a prudent man or ERISA compliant retirement plan REALLY chose? 2 and 20 for alpha is a bargain compared to 18bp for non-smart beta. Jack Bogle steals peoples’ precious time waiting years for dumb and volatile indices to rise....
Read more...
Hedge fund billionaire?
Low fee is not low cost. Jack Bogle likes “cheap” index funds. I don’t know why as they are risky and expensive considering the heavy losses, limited “work” involved and lack of skill. Lose a large percentage of investors’ hard-earned money? It’s the market’s fault not theirs, right? Two 50% drawdowns last decade alone. What intelligent person would invest in such hazardous toxic waste as a passive index fund?Get someone to make a list of stocks for a benchmark, track them, and then endure years below a high water mark. Which prudent man would...
Read more...
Efficient market
Efficient Markets Hypothesis? In the REAL world we have Emotional Markets Hysteria. Every security at all times is mispriced. Markets are not rational at reacting to new information. Data is either overreacted or underreacted to and nothing ever trades at fair value. The growth and sustained success of hedge funds proves the existence of and ability to exploit mispricings and inefficiencies.Some claim that widely followed securities are efficiently priced but even in liquid markets I have found that the more participants then the more mis-priced that market is. The more money in an asset, the...
Read more...
Arbitrage hedge fund
Arbitrage? There is more DUMB MONEY invested in the markets than ever before. So there are more opportunities to arbitrage dumb investors than ever before. Tenured economics professors claim there is no such thing as a persistent arbitrage as it supposedly would be copied and therefore eliminated! They are so wrong. If you have the intelligence and resources there are plenty of arbitrages available on Wall Street just as money is found on other streets. Nickels in front of steamroller strategies are silly ideas where “star” traders and Nobel laureates risk client capital for 5...
Read more...
Avoid hedge funds?
Please don’t invest in good hedge funds. Because I need as much AUM capacity as possible for my clients before the world’s best investors stop accepting new money. Cost is determined by demand and supply. There’s vast demand and limited supply of great absolute return funds. Fees are trivial compared to their value. 2 and 20 for genuine alpha is a bargain.A friend just ate at a top restaurant. As she related the gourmet experience, I wondered if economists would claim she was ripped off. Nearby was an even more famous restaurant which served many more clients and had a...
Read more...
Machines v humans
Hedge fund geeks bearing greeks? Some models don’t work so all models don’t work? Black box quant systems are complicated so stay with “simple” beta? Humans do all the programming at quant funds so it is their sagacity or stupidity driving results. It depends on the questions people ask their computers. If you input the wrong questions with wrong assumptions then the “answers” will be incorrect. Blame the mechanic or the oily rag?I’ve heard many times that quant investing will replace humans but conversely I am hearing, yet again, that “this is...
Read more...
Long only hedge fund
Long only hedge fund? Brand extension is smart but brand destruction is stupid. What if Ferrari entered the horse and cart industry, Apple manufactured tape recorders, Amazon opened shops on main street and Google started delivering snail mail? Hedging requires short selling. Investors want absolute returns, risk management and financial innovation. Why would a TRUE hedge fund manager offer archaic long only?Any manager unable to MAKE MONEY in a bear market is not running a hedge fund. Any hedge fund firm that sets up a long only vehicle is no longer a hedge fund firm. I always redeem...
Read more...
Sports hedge fund
Sports hedge fund? Real diversification? Unlike stocks, bonds, real estate and commodities, sports results don’t depend on the economy. Sports bets offer consistent arbitrages and mispricings just like those “efficient” financial markets. Diversify PROPERLY with new sources of performance. Focus on building return streams. The economic fortune tellers are irrelevant to professional investors. Some say skill doesn’t exist! Maybe Pelé, Jack Nicklaus, Michael Jordan, Wayne Gretzky, Babe Ruth and the greatest sportsperson ever, Donald Bradman, were just lucky flukes like...
Read more...
Yale portfolio
Endowment model? Invest for the long haul? Short term volatility can’t be ignored regardless of time horizon. The endowment model was seen as a “solution” but it was deeply flawed and overexposed to downturns. It was too risky, long biased, illiquid and unhedged. The risk David Swensen took was not justified by the returns generated. He should have achieved +30% CAGR for that level of risk. Swensen urges Mom and Pop into high risk “low cost” index funds while he gambles alumni contributions on illiquid leveraged beta. Most didn’t see his obvious lack of...
Read more...
Quant fund
Quant hedge fund? The steamroller of the credit crisis flattened nickel collectors in the equity markets that hadn’t realized they were in its path. Damaged collateral caused collateral damage. Some quant funds saw their “hedges” become Texas hedges as shorts rose and longs fell. So-called “market neutral” strategies were short dispersion and got caught in a PREDICTABLE short squeeze. Market neutral is NOT risk neutral and there is no mean to revert to. Seek out crowded trades and take the other side. Dumb “logic”: it hasn’t happened so NEVER...
Read more...