Do you use technology to make your business life richer and more efficient?  

Up until last year, I simply couldn't find enough time to keep up with all tech advances... I didn't have many contacts in the finance world who embraced technologies like smartphones or mobile apps that go with them, let alone guide me.  

All of this changed drastically after I had the opportunity to work on a tech startup and experiment with some amazing new tools myself.  Since the introduction of iPhone on Verizon and the arrival of iPad, I now also have many more friends interested in knowing which apps are worth downloading...

Finance is one of the most lucrative careers post-graduation--an incentive for my own entry into that sector about a decade ago.  The following research report about the finance sector stifling innovation and entrepreneurship got me thinking about my path in finance: www.kauffman.org/newsroom/expanding-financial-sector-depleting-pool-of-potential-high-growth-company-founders.aspx  

I have always been quite entrepreneurial even in finance.  Would I have been more impactful and successful had I chosen the start-up route in a different sector?  My take is, impact and success does not depend on the sector;  it is very much a function of who you are and what your ultimate goal is.  

There is no formal industry guideline or standard when it comes to hedge fund risk reporting.  Each manager tends to adopt a template s/he likes most.  Often, these documents are sent by a trusted advisor, such as a prime broker or an experienced investor relations professional.  It is really up to the manager to report the fund's data accurately and clearly.  

One of the first projects I get involved with as I start working with a new fund is understanding what the fund managers view as risk and finding better ways of reporting those data.  

There is never a shortage of news or opinion articles in the media about the growing interest of institutional investors in the hedge fund business.  After all, some hedge funds have certainly offered investors with potentially very attractive risk-adjusted returns, which many pensions and endowments can use in today's environment.  However, as of now, it still does not quite feel like most institutional investors have a tested game plan or direct investment mandate to allocate capital to this investment opportunity set they seem not to understand--especially up and coming, emerging hedge funds which tend to have the greatest return potential.      

In that case, how does one approach institutions for hedge fund business development during the early days of a firm's life? 

One of the most time-sensitive projects I focus on at each start-up is the design of a marketing strategy and the engagement of the best people in the HF industry to execute that plan.  To my surprise, quite a few portfolio managers choose to launch their firms without an effective game plan when it comes to fundraising for their own businesses.

One of the least understood roles at hedge funds is that of the person overseeing the setup and growth of the firm's infrastructure.   Depending on the fund, the title and background of this person can vary greatly:  President, CEO, CFO, COO, Head of Business Development, Head of Administration, Partner, VP, Senior VP...   There is absolutely no industry standard!

From where I sit, the most enjoyable aspect of starting a new venture is bringing and keeping together a unique team. 

I have so far worked with over a dozen teams around the world from Tokyo to Singapore to New York.  Imagine the diversity of personalities, nationalities, religions, educational and family backgrounds!  These teams have ranged from small to large, emerging to experienced, and seeking seed investors to well capitalized. 

Here are some red flags I now avoid when I evaluate fund managers as business partners: