CREATING AND MANAGING A FUND OF HEDGE FUNDS COMPANY
Establishing a fund of hedge funds management company involves creating and managing a viable business, which as a fiduciary must act in the best interests of each of its clients and in compliance with the principles, rules and regulations prevailing in the jurisdictions in which it operates.
Most start-up FoHF management companies are small, at least at the outset, and are likely to be supported and/or advised by a number of service providers such as administrators, custodians, compliance consultants, systems providers, hedge fund consultants, book-keepers, tax advisers, accountants and lawyers.
MANAGING A BUSINESS
Business management involves a set of competencies and responsibilities that are generally distinct from trading or portfolio management. Decisions need to be made as to how the business will be organised and managed and how the principals will divide or delegate their responsibilities.
On the assumption that the business...