Over the last few weeks, unless you were stranded on a desert island, you couldn’t have missed the ocean of news about the hedge fund industry. It hasn’t been great; nor has it been pretty and, frankly, some of it has been a bit weird.
Particularly weird is the continuing saga of Sentinel, as is the series of bankruptcy court rulings on the Bear Stearns funds. Both stories have been covered extensively and so I won’t be breaking any news today. Both, while completely different, show just how tangled is the web the hedge fund industry has woven over the last few years. Everyone is truly intertwined in bed with each other.
Even with the continuing market turmoil, the destruction of the real estate market and loss of Roger Clemens for at least one start, the good news is that the Red Sox are firmly in control of the A.L. East and on to great things. (Couldn’t resist.)
More important (and more to the point), the hedge fund industry seems primed for growth in 2008. Early indications from some of the lawyers whom I frequently talk with are that interest from potential managers continues to be strong and that many existing fund complexes continue to roll out new funds and new products.
The e-mail questions on start-ups keep coming in and they all seem to be more of the same: How do I launch? Who do I talk to about the documents? What kind of deal can I get from a seeder? Why do I need a prime broker? What will an auditor do for me? And how long does it take to get a fund up and running?
The answers to these and other questions can be found in previous postings. Let me say however, if you can’t find the answer you’re looking for, send me a question and I will respond.
As the fourth quarter quickly approaches, time is of the essence for new funds to be ready for launch by January 1, 2008. You need to get started. The worst thing that can happen is that you fail to launch in time for the current wave.
Today I am heading to Chicago for the final installment of the 2007 HedgeAnswers series. We are very proud of what we have created over the past year and look forward to another great series of events in 2008. The cries have been to bring HedgeAnswers to New York and let me tell you that we are working on it. Be prepared. I expect to see all of you there.
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