Hedge Funds

What you need to start a hedge fund now: Top talent, a brand name — and a vast amount of cash

The temptation for star portfolio managers to start their own hedge funds has started to shrink, as costs have spiralled and investors have become more discerning

What you need to start a hedge fund now: Top talent, a brand name — and a vast amount of cash
Illustration: Emile Holmewood

Hedge funds shell out millions of dollars to bring in star portfolio managers, often handing them billions to manage in a bid to bolster returns. But what if this talent wants to go it alone?

Starting a hedge fund is an increasingly complex process, undertaken by only a hardy few. It’s no longer enough to invest some of your own capital, hire a bunch of traders and hope investors start writing cheques. 

WSJ Logo