The Hedge Fund Resource Network your No. 1 source for domestic & offshore fund formation, hedge fund website design, and hedge fund consulting.

Domestic Fund Formation It is a simple process to enter the hedge fund industry; practically anyone with $15k to $20k can start a hedge fund and forming a hedge fund gets easier every year.
Offshore Fund Formation An offshore hedge fund is simply a structure used by hedge fund managers as a way to attract offshore investors (non-U.S. citizens) or U.S. tax-exempt investors such as pension and endowment funds.
Hedge Fund Blog
Emerging markets
When China and India become the world’s biggest economies AGAIN so what? If you examine the last 20 centuries, USA was largest for 1, UK for 1 and China or India for the previous 18. Other things being equal, the most populated nations will have the largest economies. As recently as 1700 China and India accounted for 50% of global GDP. “Asian century” is simply reversion to the usual. The abnormal period was 19th and 20th centuries. But I pity those that believe BRIC hype. Emerging markets are for long/short not long only. Money has gone to BIG emerging markets not...
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Risk parity
Risk parity is jargon for leveraging bonds. At record low yields? Bond prices went up so risk parity made money. If fixed-income goes down they will lose. Investing in SKILL allows investors to meet goals. Avoid “new” spins on old beta. If 60/40 can’t deliver why should 60/80? Don’t risk poverty on risk parity. Low volatility equity is just the age-old strategy of buying defensive stocks. Low volatility isn’t low risk. Generic copycat strategies and hedge fund wannabes guarantee poor “industry” returns. Less than T-bills after stripping out...
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Warren Buffett portfolio
Warren Buffett runs a hedge fund called Berkshire Hathaway. George Soros is the top performing living hedge fund manager. They searched for successors only from other hedge funds and keep 100% of their net worth in absolute return. A single counterexample suffices to destroy efficient market dogma, index fund idols and “asset allocation” myths. I’ve invested client capital in many counterexamples. The “average” is no place for YOUR money. Talent and hard work are necessary to find alpha which is why few managers produce it. Index funds charge outrageous fees for...
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Hedge Fund Test
Hedge Fund Aptitude Test 1) Portfolio management: Today your ten biggest longs all went bankrupt and ten largest short positions were bought out at enormous premiums by overcapitalized private equity funds. You i) smash the phone, trash your Bloomberg and jump out of the window ii) write an op-ed for the WSJ, appear on CNBC and line up several conference keynote gigs iii) bit of noise in the markets today – good thing my diversified hedge fund actually is diversified iv) move the “distressed” longs to the special situations book and make higher offers on the...
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Hedge fund blog
Hedge fund manager, a long only fund and a passive professor are flying in to present to an institution in New Zealand. As the plane lands they see one purple sheep in a field. Index idol says “Every kiwi sheep is purple! I must buy them all now. At any price the farmer asks no matter how high. No need for analysis or due diligence. Market is always right because it’s efficient. It’s not my money anyway. I have academic tenure and a Nobel prize. Risk free, for me. And a passive firm pays me outrageous fees to pump their products.” Long only fan says “Some kiwi...
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Invest 2.0
Clients are priority. Working with and advising individuals and institutions on their investments has always been my core skill so I’ll be focusing on doing my best for existing and new clients. I hope you found Hedge Fund Blog informative. Clients have ranged in asset ownership from $188,000 to $300 billion. A lot of what I do is assessing investment consultants, fund managers and financial products and when necessary recommending changes. I also design master portfolios for specific asset/liability needs. The philosophy is simple. Deliver substantial value. Skill is the only...
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Hedge fund technology?
Time is not money. Technology is money. The best way to predict the future is to invest in it. The only certainty is change. Technology is affecting how we invest and innovation impacts everything. Good hedge funds are inventing better ways to make money and disrupting the traditional world that has failed people so dismally. Successful investing requires flexibility so it makes sense to keep up with trends. NEW ideas have changed OLD investment strategies. Creative destruction doesn’t only apply to business innovation it also applies to investment innovation. There has been plenty of...
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Bear market?
Bear markets for beta are bull markets for alpha. It’s always an OPPORTUNITY MARKET for absolute return. Recently short selling has been performing well and stock indices have erased ALL last year’s gains. Investors have not received the alleged equity risk premium for so long but then stocks don’t read economics textbooks. Not many people can afford to risk their retirement savings hoping for REALITY to catch up with dubious THEORY. The “panic of 2007” will worsen in 2008.Though currently above 13,000, I would be amazed if the Dow and Nikkei are still above...
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Active versus passive?
Active versus passive? There are NO passive investment strategies. Active is the only choice in the REAL world since “passive” requires active decisions by index construction firms on which securities to include. Investors also make an active decision as to which “passive” benchmark to track. If you think the best stockpickers work at Standard and Poor’s, invest in a “cheap” fund of the stocks they ACTIVELY select. If you don’t like that risk, avoid it. Why tie up capital in a manager’s 500th best idea? Do you really think someone with the...
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Hedge fund drawdown?
Hedge fund drawdown? First rule of risk management – if it can happen it will happen. Recently we have seen excellent returns from many hedge funds, hard times for lower quality hedge funds but MUCH worse from long only equity and credit. Skilled managers don’t always make money but they do have fewer, milder and shorter drawdowns than traditional long only that doesn’t even attempt to manage risk, reduce exposures or preserve capital. As a risk averse conservative investor I’ll stick with 100% in hedge funds. It’s the PRUDENT approach. Hope for the best but...
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