Saturday 12 September 2015

What's it like to run a hedge fund?



Forex Market Discussion 



What are the Hedge Funds of today?

Prior to the spectacular collapse of the US investment banking giants Lehman Brothers, Bear Stearns and a whole host of banking funds after 2005, the hedge fund industry came under closer scrutiny and as a consequence of tighter regulation, the larger ones simply folded, ceased or down-sized. Today, the average hedge fund management team has just under the princely sum of $40 million. Moreover, most hedge funds have evolved today from the humongous unwieldy creatures they were of the past to become highly specialized funds known for their modes of trade. With such exotic appellations  as - Long/short, Emerging Market, Managed Futures, Forex, Fixed Income arbitrage, Global Macro being some of the types of specialized areas of trading, today's hedge funds have become smaller and known for their choice mode of trade that becomes their distinct hallmark specialty. With the advent of the internet, year by year, information monopoly has become an event of the past. With a level playing field between behemoth and tiny trader mere seconds of information assimilation and processing now separate he or she who blinks first and takes position. Thus making returns has become harder and harder year by year for the hedge funds.

Watch the following 3 videos on the creation of a hedge fund in London as a challenge laid down by owner Lex Van Dam to take on individuals from diverse backgrounds, provide them with a set of skills and the tools to make money for the firm.

Part 1:



Part 2:





Part 3:





Hedge fund formation can be onshore and offshore an unlimited in prospect of attracting high net worth individual and institutional funds commitment. But the act of making consistent profit year in, year out, is a far tougher feat today than most pundits would like to portray. The formation of a hedge fund is the next step up in evolution from the successful experience of an individual trader; in the hope that the rewards from a successful individual trading career can be shared later with professional money managers who would like to hear about your trading prospectus with a view to invest.



Pieter Bergli - DeLoren Trust Holdings

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