Understanding Mutual Fund Strategies and Fundamental Risk
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It’s also important for managers of start-up funds to understand the numerous expenses associated
with operating a hedge fund. As an example, many funds – like the $20 million fund described above –
cannot afford a non-bundled third-party vendor’s order management system (OMS), risk management
product, aggregation service, trade allocation module and attribution tools. Once a fund understands
its expenses, it can determine exactly the asset level and performance combination necessary to cover
those expenses and have an adequate profit.
For a prospective start-up fund, this analysis will determine whether the business plan is realistic or
needs refinement before it...
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Understanding Mutual Fund Strategies and Fundamental Risk
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Understanding Mutual Fund Strategies and Fundamental Risk
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