Jimmy Donnelly, director of Fortis Prime Solutions,
outlines what qualities to look for in a service provider to
ensure a successful business and robust infrastructure
A key consideration in running a successful hedge fund is to
concentrate on not only the performance and trading strategy,
but also to run the fund as a 'business', with a coherent and
robust infrastructure. The weight of evidence indicates that
the majority of hedge fund failures are at least partly due to
operational problems. So the choice of service providers for a
start-up hedge fund is a fundamental aspect of a successful
business model and, therefore, start-up managers should take
significant care with this decision.
In building a hedge fund business, the appointment of an
administrator is a decision that is well worth researching in
order to make the right choice. An administrator should be seen
as a long-term strategic partner whose service levels...