Helpful, Accessible Guidance for Budding Hedge Funds So You Want to Start a Hedge Fund provides critical lessons and thoughtful insights to those trying to decipher the industry, as well as those seeking to invest in the next generation of high performers. This book foregoes the sensational, headline-grabbing stories about the few billionaire hedge fund managers to reach the top of the field. Instead, it focuses on the much more common travails of start-ups and small investment firms. The successes and failures of a talented group of competitive managers all highly educated and well trained'show what it takes for managers and allocators to succeed. These accounts include lessons on funding, team development, strategy, performance, and allocation. The hedge fund industry is concentrated in the largest funds, and the big funds are getting bigger. In time, some of these funds will not survive their founders and large sums will get reallocated to a broader selection of different managers. This practical guide outlines the allocation process for fledgling funds, and demonstrates how allocators can avoid pitfalls in their investments. So You Want to Start a Hedge Fund also shows how to: Develop a sound strategy and raise the money you need Gain a real-world perspective about how allocators think and act Structure your team and investment process for success Recognize the patterns of successful start-ups The industry is approaching a significant crossroads. Aggregate growth is slowing and competition is shifting away from industry-wide growth, at the expense of traditional asset classes, to market share capture within the industry. So You Want to Start a Hedge Fund provides guidance for the little funds the potential future leaders of the industry.
Ted Seides, CFA, is the son of a teacher and a psychiatrist. Perhaps by genetic disposition, he is passionate about sharing his insights and investing in people. From 2002 to 2015, Ted was a founder of Protégé Partners LLC and served as President and Co-Chief Investment Officer. Protégé is a leading multibillion dollar alternative investment firm that invests in established small and select emerging hedge funds on an arms-length and seed basis. Ted built the firm’s investment process and managed the sourcing, research, and due diligence of its portfolios. He worked actively with each of Protégé’s 40 seed investments since inception. In 2010, Larry Kochard and Cathleen Ritterheiser profiled Ted in the book “Top Hedge Fund Investors: Stories, Strategies, and Advice.” Ted began his career in 1992 under the tutelage of David Swensen at the Yale University Investments Office. During his five years at Yale, Ted focused on external public equity managers and internal fixed-income portfolio management. Following business school, he spent two years investing directly at Stonebridge Partners and J.H. Whitney & Company. With aspirations to demonstrate the salutary benefits of hedge funds on institutional portfolios to a broad audience, Ted made a non-profitable wager with Warren Buffett that pitted the 10-year performance of the S&P 500 against a selection of five hedge fund of funds from 2008-2017. Ted writes extensively on the industry. His work includes a blog for the CFA Institute’s Enterprising Investor and publications for the late Peter L. Bernstein’s “Economics and Portfolio Strategy,” Harvard Business School Publishing, FT Alphaville, and Institutional Investor. Ted’s first book, So You Want to Start a Hedge Fund: Lessons for Managers and Allocators (Wiley) is scheduled for release in February 2016. Ted sits on the Board of Trustees of the Greenwich Roundtable and is a Trustee and member of the investment committee at the Wenner-Gren Foundation. He serves as a member of the Founder’s Circle of Cycle for Survival, the Board of Technoacademy, and previously was a founding Board member of Citizen Schools-New York. He is a Senior Advisor to The Imprint Group, an organization that helps leading investment managers sustain growth by focusing on its people. Ted holds a BA in economics and political science, Cum Laude, from Yale University and an MBA with honors from Harvard Business School.