On the face of it sourcing hedge fund talent seems to be
pretty easy. After all, how difficult can it be to find a
decent hedge fund manager? Well the answer is: 'Pretty
difficult.' And if any proof is needed why not ask the
professional funds of funds who put money with Beacon Hill or
Many of the best-known managers are 'closed' to new
investors, and identifying the real talent among the newer
managers is far more difficult than it looks. Unfortunately
there is plenty of scope for errors.
Worse still, the task is arguably getting more and more
complicated as the number of hedge funds proliferates around
the world. Today there may be more than 5,000 funds to choose
from and separating the wheat from the chaff is getting more
expensive and complicated.
Sadly, there are no shortcuts. Sourcing talent requires
manpower, air fares, monitoring software, the...