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Alternative Market Briefing

Book Review: A Guide to Starting Your Hedge Fund

Friday, September 18, 2015

Matthias Knab, Opalesque for New Managers:

I have known Erik Serrano Berntsen and John Thompson, who teamed up to form the London-based hedge fund seeding firm Stable Asset Management, probably for a decade, so I was very excited when they sent me a copy of their "Guide to Starting Your Hedge Fund" which recently came out at Wiley.

To be frank with you, I don't always read books that are sent to me, but this one has some unique strengths that I am happy to convey. Given the background of the two authors, especially John Thompson's, who also served as Member of the Supervisory Board of the European Energy Exchange, the book has strong focus on energy and commodity funds and markets, but readers active in all hedge funds -- and even investors who want to gain a better understanding of the new realities -- will find the third and fourth parts of the book of exceptional value.

In those two sections the authors write in great detail about:

  • The Business plan (of a hedge fund firm)
  • Laws, Contracts and Lawyers
  • Service Providers
  • Fundraising
  • Operations and Infrastructure
In the Appendix, the interested reader finds additional, detailed resources, such as
  • A Sample Business Plan Outline
  • Outline of a Confidential Explanatory Memorandum (Sample Offshore Feeder)
  • Sample Due Diligence Questionnaire Outline
I found those to be......................

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