In the last post, I asked the rhetorical question of should you launch a hedge fund? If you have not done it before, and can then the obvious answer is yes. For me its a bit different. I was seeded a hedge fund in 2006, and then basically took over and relaunched one in 2010, and then went on to to seed two more hedge funds. So having been involved in 4 separate hedge funds, the idea of launching a hedge fund does not leave me as thrilled and excited as I was back in 2006 when I first started out. This is particularly so since the last three hedge funds I worked on I explicitly set them up with the aim of building a lasting edge. However, my edge was built on the free flow of capital, and the free movements of currencies, which basically ended when China imposed capital controls, and Europe and Japan instigated capital controls in 2016. Readers of this website will know that I now am looking at politics to build an edge in investing, but early results are still so so, and not enough to convince me get back in the game. The other obvious answer is to copy other successful hedge fund strategies. But how should we can tell if a fund has a lasting edge that is worth copying? Well first of all we can start with a list of the worlds biggest hedge funds.
There are a lot of problems with looking at the large hedge funds for a winning investment strategy.