The Fundamentals of Hedge Fund Management, 2nd Edition

CHAPTER 7

Why the Back Office Matters

As you continue to build your business, one of the first things you will realize is you need to make your infrastructure good and solid. Your operation's infrastructure and how it appears will become a major part of the success of your business. Investors like to kick the tires. They do so by looking at your marketing and performance material and by viewing your office space, computers, and human resources. Many investors talk directly with service providers, perform background checks, and check references. Though it is important to put on a good show, you must ensure you have all the tools you need to succeed. The show is not something to take lightly since it is the infrastructure that runs the business. Technology is the great equalizer. Take advantage of available systems and services to create a professional well-oiled machine.

USING THE RIGHT TOOLS

Having the right tools at your disposal is important. Doing so will allow you not only to build your business but to also maintain an edge in the markets. With today's advances in technology, all of the information you need to make a decision about a potential investment is probably just a mouse click away. Though this is viewed as good by some, I believe it is actually bad and makes a manager's job harder. The Internet and its resources, combined with the development of Bloomberg and Thomson Reuters machines, not to mention the countless front-office, middle-office and back-office technology ...