Foreword xi Acknowledgments xv Introduction xix 1 The Lessons 1 Lessons for Managers 2 Lessons for Allocators 4 2 So You Want to Start a Hedge Fund? 7 3 Attracting Capital 11 Signals of Success 12 A Classic Chicken-and-Egg Problem 30 Investment Funds are Sold, Not Bought (Just Don't Tell the Buyers) 43 Leveraging the Buzz 49 Riding the Wave 55 Building a Great Business 60 4 Team 65 Your Single Best Investment 66 The Best a Man Can Get 73 The Two-Headed Portfolio Manager Monster 76 Where Do Nice Guys Finish? 83 Turnover: Don't Knock It Till You Try It 86 Pacing Growth 91 5 Investment Strategy 97 Finding True North 97 Best Foot Forward, With Both Feet 100 The Tug of War between Flexibility and Style Drift 106 Stick to Your Knitting 117 Building Blocks of Process 123 6 Investment Performance 129 A Slave to Monthly Numbers 130 Sustaining Performance 134 Reaching for Return 138 The Role of Luck 144 The Best Month in a Manager's Career 150 7 So You Want to Invest in a Start-Up Hedge Fund? 153 Influencing Outcomes 154 Terms 158 Preparing for Bumps in the Road 164 Heed the Stop Sign 167 Crossing the Velvet Rope 173 Making Decisions 177 8 Parting Thoughts 183 Author's Disclaimer 189 About the Author 193 Notes 197 Index 205
TED SEIDES is the former President and co-CIO at Protege Partners, LLC, a leading alternative investment firm launched in 2002 that invests in small and specialized hedge funds on an arms-length and seed basis. He has authored investment pieces for CFA Institute Conference Proceedings Quarterly, Institutional Investor, Harvard Business School Publishing, FT Alphaville, and the late Peter L. Bernstein's "Economics and Portfolio Strategy" newsletter.