The Fundamentals of Hedge Fund Management, 2nd Edition

CHAPTER 9

Perception versus Reality

Today is the first day of the rest of your life. Now what?

That is what you will think as soon as you decide to get into the hedge fund business. It is frightening and exhilarating. This is it. You have broken free of the corporate bonds and are out on your own. It is a great time. You are about to embark on a wild and exciting ride, and you are going to rocket to the moon or crash in the desert. You are one of the few and the proud, a person who chases dreams, an entrepreneur. All that is left is to build a successful business. That is a lot, but it is doable. There will be ups and downs throughout the process but fear not—keep your head up—shake off the dirt and move forward.

As you step out of the corporate world, you need to make sure you have a positive attitude and stay focused on the tasks. Feel good about your decision and be proud you took the plunge, but feeling good and being proud are not going to pay the bills or build your business. You need to pay attention, get things moving, and begin putting in place a plan that will provide you with success and, more important, an answer to the question, “Now what?”

In the hedge fund business, every day is the first day of the rest of your life. Performance is bad? Don't worry. You can make it up tomorrow. Cannot raise any assets? You will find a way to do it tomorrow or the next. If you get that through your head, you will succeed. Don't get discouraged because being discouraged leads to ...