The Business of Running a Hedge Fund
2010 was a transformative year for the hedge fund industry and served as a strong reminder that managing money is not the same as running a business. A significant number of small, mid-size and large fund closures already in 2010 provide continuing evidence of the material, multifaceted challenges facing operators of hedge fund businesses.
Managers who understand the distinction between managing money and running a business and who execute both effectively are best positioned to maintain a sustainable and prosperous business—to achieve not only investment alpha, but also enterprise alpha.