So You Want to Start a Hedge Fund?
Ted Seides began his professional career at the Yale Endowment working under David Swensen, and transitioned his early experience in hedge fund investments into the foundation of Protégé Partners. The fund of funds launched in 2002 with the explicit mandate to invest in small managers and startups, and allocated to 120 early stage hedge funds over the last 14 years, including 40 seed investments.
Ted recently published a book entitled, So You Want to Start a Hedge Fund: Lessons for Managers and Allocators, in which he provides a roadmap for managers to learn about the intricacies of launching a hedge fund. He includes lessons on why hedge funds make the same mistakes over and over again, particularly in their business processes. He pinpoints pressure points that can lead to the success or failure of a fund, including best practices in marketing, team building, investment strategy, and performance. He also discusses the misconceptions of many allocators about investing into smaller hedge funds, and why and how investors should take a closer look at them.
– Ted Seides: From the Yale Endowment protégé to Protégé Partners
– The investment philosophy behind a 14 year fund of fund mandate to invest in small managers
– Lessons from 120 early stage hedge fund investments, and from seeding 40 managers
– Why startup funds make the same mistakes over and over again. The single biggest mistake that early stage hedge fund managers make
– How some start ups are able to get investors “crowd” into their hedge fund
– Key lessons on how to build a successful hedge fund team. Why staff turnover at a start up can be a good thing
– Can a hedge fund “coach” add value?
– Why start-ups should avoid the equal co-portfolio manager structure
– Allocators should view an investment with a manager and the timing of that investment as independent components·
– Why nearly all successful launches are coming out of existing hedge funds