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Funding Ideas for Small Businesses

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Starting a small business is a large undertaking and needs to be backed-up with not only an innovative idea but also money. In many ways, it has become much easier to start your own business, but that also means it is much easier for essentially everyone to start their own business which leads to a large increase in competition for funding. Finding funding for a small business is a sticky web to work through, but once you know where to look and have plenty of persistence, you are already ahead of your competition. Due the increase in the number of small businesses, banks can require a higher benchmark for applicants to have. Those that have a high FICO score and collateral have a much higher chance of receiving the loan in comparison to those that don’t. Thankfully, there are plenty of other options besides going to the bank.

Personal Investment

One of the most basic and common ways to provide funding for your business in the very early stages of the start-up is by personally investing in it. Over 90% of startups are self-funded, also known as bootstrapping. This could mean withdrawing money from your own savings or retirement account or living on ramen and water for the time being while putting every extra penny towards your brilliant and innovative idea. If you don’t have enough to get it going and are sick of eating ramen, pitch it to your friends and family and see if they are willing to invest in it. Having support from others will also improve your chances with potential investors as this will show your credibility. One of the major advantages of personally investing is that you don’t have to give up any equity and you retain complete control over your business.

Professional Investors

If, after having reached out to your family and friends, you still need more funding for your business, the next idea would be to approach professional investors. Before doing so, make sure you have an extremely strong business plan written up that includes a strong and measurable strategy of how you will be implementing the plan. These investors will not only be looking at the idea and how well you sell it to them, but also at your previous experience within the business sector, which can be a difficult sell for those that are first-time entrepreneurs. Keep in mind that if they do choose to invest, they will require a portion of the businesses equity and control. Similar to the banks approach though, because of the strong increase in the number of small businesses, investors are setting much higher benchmarks so that they only invest in the most promising concepts and ideas.

Grants are a great way of getting your business off the ground and can range from a few hundred to thousands of dollars. With grants, it relies heavily on knowing where to look and uncovering grants that may not be as competitive when applying. There are numerous grants for small business owners that offer funding for women. Some are aimed at those whose start-ups are focused on fashion, music and art, while others only offer the grant to small businesses that have a positive social and environmental impact. There are also a wide variety of grants only available to minorities and immigrants, so it can be extremely beneficial to check all the various avenues that are advantageous to you.

Government Assistance

There are opportunities of government funding for small businesses. The Small Business Administration (SBA), which is the largest federal funding source for small businesses, offers programs to those whose companies are aimed at scientific research and development. Once you are admitted into the program, there is a much higher probability of qualifying for various grants. It is important to note though that SBA does not assist start-ups or expanding companies, but those that are focused on research and development and export.


A relatively new way of figuring out how to get funds for a business is through crowdfunding. This is one of the most inexpensive ways to not only raise money to get the business rolling but also to promote your brand and the services or products you have to offer and get a following of customers in the process. Essentially all you have to do is choose a crowdfunding platform, create a unique profile for the business, project or service, set a funding goal and put the public request online. Supporters will often give a cash donation in exchange for company assets in either the form of rewards or equity.


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Hedge Fund Business Plan Template

Written by Dave Lavinsky

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Hedge Fund Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their hedge fund companies.

If you’re unfamiliar with creating a hedge fund business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a hedge fund business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your hedge fund company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan

If you’re looking to start a hedge fund company or grow your existing hedge fund company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your hedge fund company to improve your chances of success. Your hedge fund business plan is a living document that should be updated annually as your company grows and changes.

How to Write a Business Plan for a Hedge Fund

If you want to start a hedge fund company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your hedge fund business plan.  

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of hedge fund company you are running and the status. For example, are you a startup, do you have a hedge fund company that you would like to grow, or are you operating an established hedge fund company that you would like to sell?

Next, provide an overview of each of the subsequent sections of your plan.

Company Overview

In your company overview, you will detail the type of hedge fund company you are operating.

For example, you might specialize in one of the following types of hedge funds:

In addition to explaining the type of hedge fund company you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

Industry Analysis

In your industry or market analysis, you need to provide an overview of the hedge fund industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the hedge fund industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your hedge fund business plan:

Customer Analysis

The customer analysis section of your hedge fund business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hedge fund company you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hedge funds.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of financial managers or institutions, and other types of investment opportunities. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hedge fund business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of hedge fund company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide asset management, financial accounting, or liquidity optimization services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Promotions : The final part of your hedge fund marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your hedge fund company, including answering calls, meeting with investors, collecting fees, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth investor, or when you hope to reach $X in revenue. It could also be when you expect to expand your hedge fund company to a new location.  

Management Team

To demonstrate your hedge fund business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing hedge funds. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a hedge fund or other financial services business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you charge an asset management fee of 3% and a profit fee of 20% ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your hedge fund, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hedge fund:

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or your financial management credentials.  

Writing a business plan for your hedge fund company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the hedge fund industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful hedge fund company.  

Hedge Fund Business Plan FAQs

What is the easiest way to complete my hedge fund business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your hedge fund business plan.

How Do You Start a Hedge Fund Business?

Starting a hedge fund business is easy with these 14 steps:

Learn more about   how to start your own hedge fund business .

Don’t you wish there was a faster, easier way to finish your Hedge Fund business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business plan writer can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

Business Plan Template For Small Businesses & Entrepreneurs

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A hedge fund business plan : investment theory, operations, and capital raising for Broadgates Capital Management


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Writing a Hedge Fund Business Plan

Starting a Hedge Fund

Starting a Hedge Fund

Written by Bobby Jan for Gaebler Ventures

Writing a hedge fund business plan is a bit different than writing a typical business plan. If you don't know how to start, this article will show you what to include in your hedge fund business plan.

If you want to start a hedge fund, you might realize that the hedge fund business model is different from typical businesses.

Writing a Hedge Fund Business Plan

When you create a hedge fund, you are actually creating two businesses: the management business and the fund itself.

Writing a hedge fund business plan is also a bit different from writing a typical business plans.

There are many ways you can write a hedge fund business plan but all of them should include the following four components: vision, company overview, product strategy, and market analysis.

This article provides a general guideline for drafting each section. The guidelines, however, are not exhaustive. If you are writing a unified or merged business plan, please be careful of how much you disclose. Finally, it is important to consult a professional before finalizing your business plan.

Company Overview

Product Strategy

Market Analysis

Cheng Ming (Bobby) Jan is an Economics major at the University of Chicago who has a strong interest in entrepreneurship and investing.

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15 Common Hedge Fund Mistakes (Part 5)

Hedge funds are struggling these days, and much of this struggle might have been avoided. This article, the fifth in our series of six articles, discusses some of the mistakes that can cause a hedge fund to fail.

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A Fund Managers’ business plan

Avoid the pitfalls of under-predicting expenses & over-predicting raising capital

Launching and running a hedge fund is a huge responsibility for any investment manager, requiring a significant amount of oversight for their investors. Making the right strategic decisions upfront is an essential component to a fund manager’s future success. Addressing the major decisions to be made:

Fund managers can get into trouble by having an overly optimistic view. Under-predicting expenses and over-predicting raising capital is the common pitfall, so always take the conservative approach. Based upon the complexity of the investments, expenses may vary from 35K to 100K USD (€27K – €81K) and usually include legal cost, audit and tax and fund administration. Budgets should reflect whether the investors or the investment manager bear the burden. In all cases, creating a methodical business plan – from pre-launch through the fund lifecycle – will help eliminate a significant amount of unforeseen expenses, involve regulatory requirements and tackle investor concerns. 

For most emerging managers, the first year running cost are their primary concern along with raising capital. So opt for a cost-effective ramp up solution as your fund scales. Other factors to consider: 

Creating the appropriate structure will be based upon your investment strategy and location of your investors. The most common structure in the US for emerging managers is a Delaware Limited Partnership. These structures are: 

Private equity funds are closed-ended (limiting the number of investors), have a typical life span of seven to ten years and are generally more complex than a typical open-ended fund. A significant amount of planning is needed to predict running costs and investment duration throughout the fund lifecycle. These are generally disclosed in the funds formation documents. Raising enough capital is always a key driver, as well as limitation of startup, management and personal expenses.

To successfully grow your fund, you need to have formulated an appropriate business plan and you should have a personal stake in the fund (the ‘Skin in the Game’): why would an investor invest, if you won’t? One of the mistakes emerging managers make is trying to raise capital before drafting their legal documents. This could give the impression that you are not serious about your fund. Most start-up funds raise initial capital from friends and family to develop a track-record, while others focus on institutional and high net worth investors. Considering the right sector, appropriate fees and the right business partner can dramatically improve your results.   

When selecting the right business partner:

Just ask yourself: will you be the big fish in a small pond, or a small fish in a big pond? It is extremely important to align yourself with partners that are large enough to provide a comprehensive and seamless service level, yet small enough to offer you partnership and dedication needed. Choose service providers who have your best interest in mind and truly act as an extension of your business. Regardless of your fund size and scope.

Need to know more? The Bolder Group (formerly Circle Partners and AMS Financial) has been working with emerging and established fund manager since the year 2000, playing an essential role in fund structuring, ongoing corporate and legal support, fund accounting and administrations services, register and transfer agency services, financial, regulatory and tax reporting services. We create partnerships with clients and create a customized solution to fit individual needs. - The World's Leading Business Plan Template Directory

The World's Leading Business Plan Template Directory


Hedge Fund Business Plan Template [Updated 2023]

Hedge fund business plan template.

If you want to start a Hedge Fund or expand your current Hedge Fund business, you need a business plan.

The following Hedge Fund business plan template gives you the key elements to include in a winning Hedge Fund business plan.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your Hedge Fund business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Hedge Fund Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Oxford Hedge Fund Business Plan

Profile image of Vladimir Sokolov

Launching a start-up hedge fund is a complex, multifaceted endeavor that requires an understanding of the interconnectivity between capital raising, investment strategy, regulation, and fund operations. The purpose of this document is to explore each of these categories and provide a plan for the launch of a hypothetical new fund (Broadgates Capital Management). In doing so, the key challenges of launching a new fund are uncovered, while clearly identifying how I would think about the fund's investment methodology and process.

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U. Pa. J. Bus. & Emp. L.

Sofia Johan

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Dr. Asif Kamran

This study analyzes and explores the Scope of Hedge Fund in Pakistan. Due to time constraint the research is limited to certain core point. Main focus is to find out the reason why Hedge fund is not started in Pakistan till yet, what are the major problems hedge fund has to encounter. What style and strategies will be successful in Pakistan and what are the main challenges that the hedge fund has to face in Pakistan. Due to shortage of primary data availability in references of Pakistan, the study is design in an exploratory form to get the maximum insight over the topic with in limited time period. Data is gathered through questionnaire and interviews both are structured. The respondents of the study are the top head of Investment banks as the investment bank play a big role in bringing Hedge funds in Pakistan economy and financial market. One interview is conducted with Dr. Ishrat Husain to find out the view of regulatory bodies over the issue. Through this research it is found that there are very few investment strategies/option available for hedge fund which can limit the huge investment style menu to very few options. And if we start hedge fund on this stage it would not as successful idea as it globally. Keywords Commodity trading advisor (CAT) · Collateralized mortgage obligations (COMs) · Real estate mortgage investment conduits (REMICs) · Stripped mortgage-backed securities (SMBSs) · Fund of funds (FOF) · Hedge fund returns (HRF)

Journal of Insurance and Financial Management

[JIFM] Journal of Insurance and Financial Management

Following the crisis of Long Term Capital Management (LTCM), concerns about the hedge funds have increased tremendously. Since the LTCM crisis; hedge fund industry has grown impressively, attracted many investors due to the high rate of returns and has begun to act as financial market leaders which also in return increased the concerns. The problems that hedge funds are able to cause, were seen during this crisis and proved that the benefits of hedge funds can easily be reversed and cause a financial disaster. This ability of hedge funds took the attention of regulatory authorities. This paper discusses the costs and benefits of the hedge funds, shows how hard it can be to impose further regulations on the problematic areas and tries to come up with some possible solutions for these problems that threaten the systemic stability.

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Home » Business ideas » Financial Service Industry » Hedge Fund Business

How to Write a Hedge Fund Business Plan [Sample Template]

Are you about starting a hedge fund business ? If YES, here is a complete sample hedge fund business plan template & feasibility study you can use for FREE . If you are a big time investor looking for ways to expand your investment portfolio, then you should consider starting a hedge fund firm. You may want to ask ‘what is a hedge fund? ’

What is a Hedge Fund?

Hedge fund can be simply defined as is a regulated investment fund ( a much wider range of investment and trading activities ) that is typically open to a limited range of investors who pay a performance fee to the fund’s investment manager who invest the funds and bring returns. The investment could either be a long term investment or a short term investment.

Hedge funds manager are known to invest in a broader range of assets, which includes long term and short term investment in equity, bonds, commodities, and derivatives et alit you run a hedge fund firm, the easiest ways for you to make money is to help your clients make more money.

The income you generate is based on your performance which is why most hedge fund managers employ different investment strategies to generate good returns for their clients. In other words, the performance fee is indeed the defining characteristic of a hedge fund.

What It Take to Start a Hedge Fund Business Successfully?

If you are looking towards starting your own hedge fund, then should be ready to manage a small highly professional workforce. This is so because on the average, hedge fund firms are known to manage huge assets with relatively few employees. Hence the stiffer competition in the hedge fund industry amongst those seeking for job openings in the industry.

Saying that Hedge funds investment is a risky venture is just stating the obvious because hedge funds aren’t regulated by the government or any financial regulatory body because it is limited to friends, business partners and families and not open to the general public. The risk involved in hedge funds is what makes it open to only few accredited investors. Here below is a sample hedge fund business plan;

A Sample Hedge Fund Business Plan Template

1. industry overview.

Hedge funds is simply an investment medium that enables big time accredited investors or well established institutions pool cash or capital together to be able to invest in securities and any other form of investment opportunity that requires large initial capital to invest in.

The fact that hedge funds requires large capital makes it easier for only the rich and accredited investors to cash in on it. Hedge funds are only open to limited partners with the required cash for investing in capital intensive business portfolios.

The concept and term ‘ Hedge Fund’ was created by Alfred Jones in 1949. He founded A.W. Jones, which is a partnership with four friends, and through this investment vehicle, they were able to invest one hundred thousand U.S. dollars ($100,000) in the stock market.

They employ both long and short positions. The bottom line is that, they were able to generate 17.3 percent returns during the first year of investment and that was enough to set the ball rolling for hedge fund investment et al. In the united states of America, the hedge fund industry is estimated to be a $1.2 trillion industry with approximately 9,000 active hedge funds and funds of funds.

Statistics has it that in December 2009, the largest – top 25 hedge fund managers had an estimate of $520 billion in assets under management. Amongst the list are Bridgewater Associates, Paulson & Co., and Soros Fund Management.

History has it that hedging out unwanted risk has been a common business activity in the financial markets for centuries. Which is why as far back as the 18 th centuries, commodity manufacturers and merchants have started using forward contracts to protect themselves against futures changes in commodity prices— they do it in order to hedge out the risk of adverse market fluctuations beyond their control.

Forward contracts are still pretty much traded to this day in the futures / commodities market. Hedge Funds Investment is not open for all and sundry basically because it requires large capital to invest in it. The amount required to invest in hedge funds could range from 1 Million US Dollars to even multiple Millions of Dollars.

Each Hedge fund managers have their requirements, so just ensure that you save up large amount of cash that can meet the investment requirement of the average hedge funds you can find. Hedge fund firms are known to generate income by charging both a management fee and a performance fee from their clients.

On the average, hedge fund firms charges between 1 percent and 2 percent of assets under their management annually and the performance fees is about 20% of gross profits returned by the fund which is usually based on certain constraints.

There are several hedge fund firms in the United States of America but that does not in any way place a cap on the industry. If you know you have studied the industry and you have vast and unique investment strategies, then you can come into the industry and make profits.

Despite the high volatility of the market, investors still choose to invest in hedge funds because of the huge returns on their investment they stand to gain if they get it right. Hedge funds are known to provide access to a wide range of investment styles, strategies and hedge fund managers for one easy-to-administer investment.

Hedge fund provides more predictable returns (depending on the objectives of the fund of funds), than traditional investment funds and it provides effective diversification for investment portfolios.

2. Executive Summary

JB Moses & Associates, LLP is a registered, licensed and accredited hedge fund management firm that will be based in New York City – New York.

The company will handle all aspect of hedge fund management and related services such as offering equity long bias, equity long-only, equity long/short and equity market neutral funds, offering fixed income funds, offering emerging market funds, offering event-driven funds, offering multi-strategy funds, offering macro funds, offering distressed securities funds and other related.

We are aware that to run a standard hedge fund management firm can be demanding which is why we are well trained, certified and equipped to perform excellently well.

JB Moses & Associates, LLP is a client – focused and result driven hedge funds managers that provides broad- based services i.e. pool investments, securities or other assets on behalf of shareholders, unit holders or other beneficiaries at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer trusted and profitable hedge funds management services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they invest their funds with us.

At JB Moses & Associates, LLP, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in managing hedge funds and other investment portfolios with good track record of return on investments.

JB Moses & Associates, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become one of the leading brands in hedge funds management line of business in the whole of New York City, and also to be amongst the top 20 hedge funds management firms in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that New York is the right place to launch our hedge fund management business before sourcing for clients from other cities in The United States of America.

JB Moses & Associates, LLP is founded by Johnbull Moses and his business partners for many years. The organization will be managed by both of them since they have adequate working experience to manage such business.

Johnbull Moses has well over 15 years of experience working at various capacities as hedge fund manager, mutual fund manager and other investment portfolio management in the United States of America. Mr. Johnbull Moses graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is an accredited and certified hedge fund manager.

3. Our Products and Services

JB Moses & Associates, LLP is going to offer varieties of services within the scope of the financial investment services industry in the United States of America. Our intention of starting our hedge fund management firm is to work with big time investors who can afford to invest their funds with hedge funds managers.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offering are listed below;

4. Our Mission and Vision Statement

Our Business Structure

Ordinarily we would have settled for two or three employees, but as part of our plan to build a standard hedge funds management business in New York City – New York, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have qualified, competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of hedge fund management business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around New York and environs as long as they are willing and ready to work with us to achieve our business goals and objectives.

Below is the business structure that we will build JB Moses & Associates, LLP;

Hedge Fund Manager / Portfolio Manager

Admin and HR Manager

Risk Manager

5. Job Roles and Responsibilities

Chief Executive Office:

Marketing / Investor Relations Officer

Chief Financial Officer (CFO) / Chief Accounting Officer (CAO)

Client Service Executive / Front Desk Officer

6. SWOT Analysis

JB Moses & Associates, LLP engaged the services of a core professional in the area of business structuring to assist our organization in building a well – structured hedge fund management business that can favorably compete in the highly competitive fund management and investment services industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for JB Moses & Associates, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of JB Moses & Associates, LLP;

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money (good returns on their investment); a team that are trained and equipped to pay attention to details and to deliver excellent jobs. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new hedge fund management firm, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated funds management and investment services industry; that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.

The opportunities in the fund management and investment services industry is massive considering the number of investors who would want to increase their investment portfolio. As a standard and accredited hedge fund manager, we are ready to take advantage of any opportunity that comes our way.

Hedge fund involves large amount of cash and it is known to be a very high risk venture. Hence, whoever chooses to manage it must not just have solid investment background, but must also know how to handle risks. The truth is that if you are not grounded in risks management as a hedge fund manager, you may likely throw away peoples’ monies and investment.

That is why it’s often said that you don’t learn the ropes with hedge funds; rookies hardly survive managing hedging funds without first cutting their teeth elsewhere. Just as in any other business and investment vehicles, economic downturn, unstable financial market and unfavorable government economic policies can hamper the growth and profitability of hedge funds.


If you look through some of the top hedge fund firms, you will realize that most of them have their headquarters in New York City. This is so because New York is one of the world’s business headquarters; key business decisions that shape the world of business are taken in New York.

The nature of hedge fund investment requires the services of core investment professionals. As a matter of fact, before any investor can commit their hard earned money under you’re the care of a hedge fund manager; they usually would want to know the profile of the hedge fund manager.

On the average, hedge fund firms employ strategies that can help them reduce market risk specifically by shorting equities or through the use of derivatives. Which is why many hedge fund strategies, mostly arbitrage strategies, are limited as to how much capital they can successfully employ before returns starts diminishing. Little wonder most successful hedge fund managers place limit on the amount of capital they will accept per time.

8. Our Target Market

As a standard, accredited and licensed hedge fund management firm, JB Moses & Associates, LLP offers a wide range of investment portfolio management services hence we are well trained and equipped to services a wide range of clientele base.

Our target market cuts across businesses and investors that have the required capital to invest in hedge fund. We are coming into the industry with a business concept and investment strategies that will enable us produce good returns on investment for our clients.

Below is a list of the individual and organizations that we have specifically design our products and services for;

Our Competitive Advantage

Despite the fact that hedge funds give huge returns on investment, it is indeed risky venture. If you drive through the street of New York City, you will come across several hedge fund firms; that goes to show you that there are competitions in the industry.

For you to survival as a hedge fund firm, you should be able to come up with workable investment strategies; strategies that will help you attract the required cash / capital and above all you should be a good risks manager.

We are quite aware that to be highly competitive in the fund managers and investment services industry means that we should be able to give good returns on investments to our clients, deliver consistent quality service, our clients should be satisfied with our investment strategies and we should be able to meet the expectations of clients.

JB Moses & Associates, LLP might be a new entrant into the hedge fund management services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified portfolio management experts in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups hedge fund management businesses) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.


JB Moses & Associates, LLP is established with the aim of maximizing profits in the hedge funds and investment services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. JB Moses & Associates, LLP will generate income by offering the following investment related services;

10. Sales Forecast

One thing is certain, there would always be accredited investors, top corporate executives and wealthy individuals who would need the services of tested and trusted hedge fund managers.

We are well positioned to take on the available market in New York City and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City to other cities in the United States of America.

We have been able to critically examine the hedge fund management market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in New York City.

Below is the sales projection for JB Moses & Associates, LLP, it is based on the location of our business and the wide range of investment management services that we will be offering;

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

We are mindful of the fact that there is stiffer competition amongst hedge fund managers and other related financial consulting service providers in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our return on investment and excellent job deliveries speaks for us in the market place; we want to build a standard hedge fund management business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our hedge fund management firm to become one of the top 20 hedge fund management firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the New York City but also in other cities in the United States of America.

JB Moses & Associates, LLP is set to make use of the following marketing and sales strategies to attract clients;

11. Publicity and Advertising Strategy

The uniqueness of hedge fund firms is such that it is the result they produce that helps boost their brand awareness. Hedge fund firms do not go out there to source any investors that they can come across but they are strategic when it comes to inviting investors to invest in their hedge funds.

It will be out of place to boost your hedge fund brand if you have not proven your worth in the industry. If you have successfully proven that you have what it takes to operate a hedge fund firm, then you next port of call is to strategically engage the media to help you promote your brand and also to create a positive corporate identity.

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the hedge fund management services industry by storm which is why we have made provisions for effective publicity and advertisement of our travels and tours agencies.

Below are the platforms we intend to leverage on to promote and advertise JB Moses & Associates, LLP;

12. Our Pricing Strategy

Hedge fund managers make their money on commission; they charge their client some percentage of the capital invested and service charges et al.

At JB Moses & Associates, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to our loyal and repeated customers.

At JB Moses & Associates, LLP our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

The cost of starting a hedge fund is in the two fold; the cost of setting up the office structure and of course the capital meant for investment. The amount required to invest in hedge funds could range from 1 Million US Dollars to even multiple Millions of Dollars. So you must employ aggressive strategies to pool such cash together.

As regard the cost of setting up the office structure, your concern should be to secure a good office facility in a busy business district; it can be expensive though, but that is one of the factors that will help you position your hedge fund firm to attract the kind of investors you would need.

This is the financial projection and costing for starting JB Moses & Associates, LLP;

Going by the report from the market research and feasibility studies conducted, we will need $150,000 excluding $1M investment capital to successfully set – up a medium scale but standard hedge fund management firm in the United States of America.

Generating Funding / Startup Capital for JB Moses & Associates, LLP

JB Moses & Associates, LLP is a business that will be owned and managed by Johnbull Moses and his business associates. They are the sole financial of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting JB Moses & Associates, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to give investors good returns on their investment.

We will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

More on Financial Services

The Groundwork

Initial costs, raising capital, 3 ways to get the legal work done.

How to Form a Hedge Fund

business plan hedge fund

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

business plan hedge fund

So you want to start a hedge fund . These alternative investments use pooled funds and a variety of strategies to achieve returns for investors. They are generally formed to identify and take advantage of specific investment opportunities, many of which come with a great deal of risk. But how do you go about setting yourself up to become a hedge fund mogul?

Getting a hedge fund up and running is a bit more challenging than forming a corporation or a limited liability company (LLC) for a private business. It involves navigating investment compliance laws, and you'll need professional legal help at some point along the way.

State Laws Vary

The laws governing the business are different for every country and state in which you do business. They may also differ—sometimes drastically—based on where your potential investors are located, how you may contact new investor leads, what you are investing in, and how many investors in total your fund attracts. 

Wherever you're doing business, these are the basics of getting a hedge fund up and running.

Key Takeaways

How To Legally Form A Hedge Fund

Before you put your hard-earned money into the venture, do some hedge fund due diligence . This is a costly and time-consuming process, so you want to make sure you've thought it through thoroughly.

First things first: Do your research and become an expert. This isn't like jumping into the stock or bond market. It's much more complicated with very nuanced steps that you'll have to take. And there are, of course, a number of risks that hedge fund managers need to understand .

Read up on hedge funds and how they operate and talk to experts in the field so you become an expert, too.

Names Are Important

You'll want to choose a name for your fund—one that best describes your investment style and your strategy. This is more difficult than it seems. You want to attract investors, and your name may help draw them to you.

Then determine how you're going to do business. Are you going to set yourself up as an LLC, a trust, or a limited liability partnership (LLP)? The LLP is generally the most popular option.

Hedge funds are expensive ventures with burdensome startup costs that can reach well over the six-figure range. Startup costs for a standard equity fund can run approximately one million dollars in the first year. Start-up costs for more complex credit and systematic funds can run around two million dollars.  

Most hedge fund managers will spend the majority of their money the first year on costs related to salaries and for fees for third-party services, such as lawyers and consultants. The chief operating officer (COO) will be a key hire the hedge fund will need right away. The annual salary range for a COO is $130,000 to $190,000.  

Get your strategy in place and raise some startup cash before you take the legal steps.

You’ll want to secure a significant amount of capital to manage and make running a hedge fund worthwhile. Raising capital is one of the biggest challenges for hedge fund startups, as potential investors will want to see that you have a significant amount of assets under management (AUM) before entrusting you with their money.

There's no real prescribed target, but you should aim to have at least $5 million in AUM to be successful, while $20 million will make you noticeable to investors. Having $100 million will get you noticed by institutional investors . In general, hedge funds can only operate successfully with large amounts of assets under management due to the powers of leverage and economies of scale .

You may find one or all of the following good sources to go to first for initial investment capital:

Eventually, you'll need to attract sophisticated investors who have larger sums of money at their disposal. You'll need to convince them to become investors by touting a track record of repeated success with your initial funding, a clear and understandable investment strategy that has a specific mandate, and a highly-skilled and experienced team on the front and back ends.

Hiring a professional marketing team to sell your fund to outside investors is a common strategy. This team will hone your pitch by crafting the right narrative, explaining the investment process used, and highlighting the fund's successes.

Create a Website

Hedge fund managers are hampered in their efforts to raise funds by regulations that prevent them from publicly advertising a specific fund. They can, however, set up informational websites that explain their investment strategies and experience. Fund managers often seek a wider audience by offering specific trading ideas on these websites.

Hedge funds are often marketed by the fund manager, who networks with friends and business acquaintances or through third-party  placement agents . The agents are individuals or firms that act as intermediaries for pension fund  managers and similar professional and institutional investors.

Sometimes fund managers offer  seed investment arrangements  to initial investors. In exchange for a substantial investment in the fund, the investor receives a discount on fund management fees or partial ownership interest in the fund. These initial investors often do their own networking to solicit other investors.

Hedge fund managers generally produce brief marketing materials to give to prospective investors. Known as a " pitch book " or "tear sheet," this covers the basic information on the fund's strategy and manager, and its terms for investing.

Once you've secured the capital, you have to work through the legalities of setting up the fund.

If you're going to give out investment advice, first pass a test and register with the Securities and Exchange Commission (SEC). This is legally required under certain circumstances and it's a good idea in any case as future investors will see this as a positive sign.   You'll also need to set yourself up with the Internal Revenue Service (IRS) to get an employer identification number.

There are three possible ways to take it from there, depending on your budget and your need for professional hand-holding.

Hire a Lawyer

You may consider hiring an experienced hedge fund attorney to help you sort through the paperwork, which can be cumbersome. It will also save you from making any costly mistakes like misfiling a form or forgetting one.

Granted, this is the most expensive option. An experienced hedge fund attorney will charge between $20,000 and $150,000 just for the legal formation of your fund .  

Experienced attorneys come with a long list of client recommendations and good reputations. Still, you'll be paying top dollar for work that is mostly completed on document templates by junior staff.

Use an Incubation Platform

Another option is to try to find a hedge fund incubation or emerging manager platform solution instead of fully forming your own hedge fund.

The emerging manager platform's business model allows you to start trading in your hedge fund and seeking investors while building an audited track record within its larger legal structure.

If you decide this is the way to go, network with people in the field to identify which platform to use. They seem to come and go and you want a stable and competent place.

This method significantly cuts down your startup expenses and allows you to spend more money on talent, systems, and other service providers such as fund administrators, prime brokers , auditors, and third-party marketers.

Use a Template Service

The final option is to use a hedge fund formation template service, which could cut costs and reduce your startup expenses by 60% to 90%. These services give you access to the same legal templates the high-end attorneys use. Hedge fund formation templates give you the freedom—and responsibility—to establish your fund hands-on.

Don't discount the fact that you may need legal representation down the road. You still have the option of retaining a full-blown, high-end attorney as your ongoing compliance and legal counsel. But you may be able to put it off until a later date.

This option is growing in popularity. As long as the fund is formed correctly, there is often a better payback by investing more of the startup money in operations and advisors rather than lawyers.

Bloomberg in Partnership With Alternative Investment Management Association (AIMA). " Hedge Fund Start-Up Guide ," Page 10.

Electronic Code of Federal Regulations. " Title 17: Commodity and Security Exchanges; Part 275 — Rules and Regulations, Investment Advisers Act of 1940 ."

Grant Thornton and Stonegate Capital Partners. " How do you start a hedge fund? " Page 10.

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  2. 5 Key Considerations in Developing Your Hedge Fund Business Plan

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