The Hedge Fund Resource Network your No. 1 source for domestic & offshore fund formation, hedge fund website design, and hedge fund consulting.

Domestic Fund Formation It is a simple process to enter the hedge fund industry; practically anyone with $15k to $20k can start a hedge fund and forming a hedge fund gets easier every year.
Offshore Fund Formation An offshore hedge fund is simply a structure used by hedge fund managers as a way to attract offshore investors (non-U.S. citizens) or U.S. tax-exempt investors such as pension and endowment funds.
Hedge Fund Blog
Low cost or low risk?
Which is better for investors? Low cost or low risk? Low fee beta or high value alpha? Should you invest with dedicated, hard working skilled portfolio managers that reduce volatility OR in a no work, unskilled speculative fund that just tracks an unanalyzed basket of 500 stocks S&P likes, with no attention to valuation or risk? Which should a prudent man or ERISA compliant retirement plan REALLY chose? 2 and 20 for alpha is a bargain compared to 18bp for non-smart beta. Jack Bogle steals peoples’ precious time waiting years for dumb, volatile indices to rise. Bizarrely he risks the...
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Hedge fund billionaire?
Low fee is not low cost. Jack Bogle likes “cheap” index funds. I don’t know why as they are risky and expensive considering the heavy losses, limited “work” involved and lack of skill. Lose a large percentage of investors’ hard-earned money? It’s the market’s fault not theirs, right? Two 50% drawdowns last decade alone. What intelligent person would invest in such hazardous toxic waste as a passive index fund?Get someone to make a list of stocks for a benchmark, track them, and then endure years below a high water mark. Which prudent man would...
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Efficient market
Efficient Markets Hypothesis? In the REAL world we have Emotional Markets Hysteria. Every security at all times is mispriced. Markets are not rational at reacting to new information. Data is either overreacted or underreacted to and nothing ever trades at fair value. The growth and sustained success of hedge funds proves the existence of and ability to exploit mispricings and inefficiencies.Some claim that widely followed securities are efficiently priced but even in liquid markets I have found that the more participants then the more mis-priced that market is. The more money in an asset, the...
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Arbitrage hedge fund
Arbitrage? There is more DUMB MONEY invested in the markets than ever before. So there are more opportunities to arbitrage dumb investors than ever before. Tenured economics professors claim there is no such thing as a persistent arbitrage as it supposedly would be copied and therefore eliminated! They are so wrong. If you have the intelligence and resources there are plenty of arbitrages available on Wall Street just as money is found on other streets. Nickels in front of steamroller strategies are silly ideas where “star” traders and Nobel laureates risk client capital for 5...
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2 and 20
2 and 20? A friend just ate at a top restaurant. As she related the gourmet experience, I wondered if economists would claim she was ripped off. Nearby was a more famous restaurant which served more clients and had a longer track record. Eating there cost a few dollars compared to hundreds where she ate. I asked about her irrational decision avoiding “cheaper” food but she said while aware of “lower” costs, differences in SKILL, EXPERIENCE and VALUE were accurate in comparing three star Michelin restaurant chefs with McDonalds “chefs”.2 and 20 for genuine...
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The Biggest Risk
Quant is dead – long live quant. The huge outperformance of quant and systematic strategies has been a consistent feature of skill-based portfolio construction for over 250 years. However the area is highly kurtotic. 5% of quant strategies are exceptionally good and they capture alpha from 95% of quant strategies that are exceptionally bad. There is no “average” quant fund! ALWAYS do the opposite of “advice” from “Nobel” prize “winners” in economic “sciences”. Hedge fund geeks bearing greeks? Some models don’t work so all...
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Sports hedge fund
Sports hedge fund? Real diversification? Unlike stocks, bonds, real estate and commodities, sports results don’t depend on the economy. Sports bets offer consistent arbitrages and mispricings just like those “efficient” financial markets. Diversify PROPERLY with new sources of performance. Focus on building return streams. The economic fortune tellers are irrelevant to professional investors. Some say skill doesn’t exist! Maybe PelĂ©, Jack Nicklaus, Michael Jordan, Wayne Gretzky, Babe Ruth and the greatest sportsperson ever, Donald Bradman, were just lucky flukes like...
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John Bogle index fund
John Bogle steals peoples’ precious time waiting years, sometimes decades, for indices to reach high water marks. He risks most on the biggest names and thinks the best stock pickers work at Standard and Poor’s! He charges an outrageous 18bp for doing no work and to simply track a list of stocks without any analysis or hedging. No prudent investor risks hard earned cash in passive funds. INVEST IN SKILL. It’s safer for the long term. Bogle and his acolytes are just low quality Delta 1 traders. The “average” is no place for YOUR money. Absurdly he says to ride...
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Hedge fund definition
Hedge fund definition? Only a small proportion of the “hedge fund” universe actually are hedge funds. Performance independent of the market and risk-adjusted returns will show what is and what isn’t a hedge fund. With hard work and experience we can determine those rare managers in ADVANCE. Absolute alpha NOT repackaged beta is the value proposition. True portfolio diversification is the only reason to choose a hedge fund. 1. A real hedge fund is designed to make money in ALL conditions. The function is not to beat an index in a bull market and preserve capital in a bear. A...
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Asset allocation
Asset allocation is NOT the primary driver of returns. Since the market is emotionally inefficient, performance is driven by skilled portfolio construction from manager and security selection. Was nothing learnt from 2008? Asset allocation dominated conventional “wisdom” and wrecked portfolios the world over. Trillions are mis-invested due to nonsense. Time slows for no-one so don’t grow old riding out drawdowns and gambling on the dangerous, failed and risky ideas of Markowitz, Fama and Sharpe. They have academic tenure but investors don’t. Eventually the markets...
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