I've encountered a lot of people over the years who've expressed an interest in managing money. The appeal is obvious: Successful hedge fund managers can make an astonishing amount of money.
For some, the idea is a flight of fancy. They have a "wouldn't it be cool if...?" moment, and after getting a feel for the time and effort required to succeed in this business, the idea falls by the way side. But for others, it's a dream seriously worth pursuing. Unfortunately, the expense of forming a fund and establishing a track record discourages some promising investment managers from entering the business.
I've started building HedgeFundRookies.com to address problems faced by fledgling fund managers, and to give these new managers a space to start building a third-party verified track record. As this site is in a development stage, I welcome any and all suggestions regarding the resources you'd like to see on such a site. Some features I've already settled upon include:
- The service will be free, but the relationship between HedgeFundRookies.com and featured fund managers will always be maintained at arms-length. HedgeFundRookies.com may, at its sole discretion, provide capital to managers who demonstrate skill at running portfolios, but there is no guarantee that capital will be provided, regardless of performance.
- Featured fund managers must be managing real money. No one provides capital to new hedge fund managers based upon "virtual" trades. The minimum amount being managed will vary depending upon the manager's style, but it will need to be realistic given the account's stated goals.
- "Failures" will be featured just as prominently as successes.
- There will be a forum and a resource center that addresses compliance and regulatory issues.
Have any questions? Or suggestions? I'd like to hear from you. You can email me at don@hedgefundrookies.com.
