Sowing The Seed
- It demonstrates to other investors that someone has faith in the hedge fund manager;
- Initial investors need not be concerned with the total expense ratio of the fund;
- It allows the hedge fund manager to cover expenses; and
- From an investor's perspective "everybody wants to be first to be second".
- Own capital and capital of friends and family;
- Seed capital providers;
- Financial advisors, wealth-management and family offices;
- HNW individuals;
- FoHFs; and
- Sub-advisory relationships.
Published December 18, 2012
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