What Emerging Hedge Fund Managers Can Do To Boost Their Chances Of Success
While 2024 was slow for hedge fund launches, this year has brought a renewal of activity, although new managers face some significant hurdles when launching their funds.
In an interview with Hedge Fund Alpha, David Goldstein, director of fund services at STP Investment Services, shared some tips for emerging managers as they come up against those barriers.
Unfortunately, emerging managers tend to make the same mistakes when entering the market. For example, they tend to launch a hedge fund and expect the checks to start coming in, but Goldstein said that’s generally not the case.
Many new managers also go into the market looking for service providers by price shopping, which Goldstein said isn’t the right way to choose providers. Saying that this is probably the most common mistake he’s seen, he noted that if managers cut corners, it means a cut in service and potentially reduced quality.
“And really, my biggest piece of advice I always give to managers is do it right the first time from the start, because it’s just going to save you time and money going forward,” Goldstein added.
Read more from David Goldstein in Hedge Fund Alpha.
