Issue #32

Every year around 500 managers start a hedge fund but there are at least 3 times as many managers looking to start a hedge fund but don't start or just give up.

A reason why is because there's no obvious ways for people to learn how to trade anymore or build a track record.

This becomes a problem for the industry because there's no way for people to commence and the initial barriers and the setup costs are just way too high. And so we end up with people who can't start.

What we've found is we have the infrastructure to help managers launch a fund from $5 million USD in AUM, and we'll look after everything else. They just need to have some initial investors and to focus on the trading.

There's just a lot of people who could have, would have started, but they go to the prime broker or they go to the administrator who says, “as soon as you have $50 million, we're absolutely keen to help you.” And almost nobody can find $50 million to start with.

So for us, Fundbox reduces the friction of setting up a fund for managers. They can prove themselves with a cost base that is a lot lower, so they've got a sort of longer runway to demonstrate their skill. That helps build the ecosystem of new managers coming into the industry.