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: