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bjbj The Ocean-Ready Hedge Fund Business Model Hello, this is Richard Wilson and today I
m going to talk to you from here in Nice, France about making your hedge fund business
seaworthy or ocean-ready. Well, I ve been learning more about sailing in these past
few years while raising capital and working in a hedge fund industry. And I think one
truth about a hedge fund industry is that if you launch your hedge too quickly and you
go out and meet with investors too quickly and too many different types of investors
too quickly, you re going to get recorded in different institutional databases as being
unprofessional, as not having a clear investment process. You re going to do a lot of damage.
I even spoke with somebody at the game 2011 conference last week about this. And they
said that they only represent and they only raise capital for fund managers within in
their first 6 months of launching their fund, because otherwise they ve probably already
done so much damage for themselves in the industry, that s a waste of their time but
you can work with them. I think that s a little bit extreme but I think the advice goes along
with what I m trying to tell you right now is that when you re sailing in a bay as many
sailboats do here around Nice, you can have some things that aren t totally working well
in your boat. Your rigs cannot be set up right, your ropes could be loose, maybe a couple
of your sails are in bad shape, maybe the things on the walls of your sailboat inside
the boat aren t really secured. But if you go out in the ocean you really need to be
kind of sea-ready or ocean-ready or seaworthy. In other words, if you get in a storm or if
you go over a bunch of swells you don t want things flying around inside the cabin of your
boat. If you need to have your main sail work because your engine dies, you really need
that main sail to work. You can t really rely upon, you got a coast guard in the bay that
he d come, tow you over 50 feet to your dock. It s much more serious when you re out in
the ocean. So it s really a great analogy for running, starting and growing your hedge
fund because before you go out and meet with very important investors, you don t or you
have a great relationship with, you really want to have everything walked down and in
place. You want to have your marketing materials, kind of in grade A shape, institutional quality,
everything that you ve shown an investor you want to have looked at 5 times by people in
your team, do the fifth draft, have it compliance approved. If somebody is going to ask you
for a standard DDQ or a question that comes in a standard DDQ you should be able to answer
within one business day, not a week or two. Everything you do in your business should
be well-polished by the time you re meeting with new investors. Hopefully when you launch
your fund you re able to balance ideas off of consultants, advisors, service providers
and some investors you already have good relationships with, then that s how you get the important
feedback and really figure out what s your checklist, what s those 20 or 30 things that
you are kind of seaworthy before you go out and start meeting with investors face-to-face
about your fund. And this is something that I think is a common mistake to make. People
want to get out there and raise capital really quickly, you know speed an implementation,
just get out there and meet with investors and get great feedback, but really you need
to be very cognizant of the fact that if you do that too early and too fast, you re really
going to hurt yourself and you could sink your boat very on in the process, whereas
if you just take that first valuable piece of the feedback from your investors, really
use it, implement it, and evolve your fund at higher levels before taking it out to 300
different investors, you re going to be much better off in the long run. So I hope you
enjoyed this video. It s Richard Wilson coming to you from Nice, France and we ll see you
again soon. PAGE \* MERGEFORMAT gdFN gd:)5 gd:)5 gd:)5 gd:)5 gd:)5 phZZZ [Content_Types].xml
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