The hedge fund industry is entrepreneurial in nature and new hedge funds are started each week. Starting a hedge fund generally costs between $40,000 and $150,000 and can take anywhere from 6 weeks to 4 months depending on whether it is formed onshore or offshore. The steps to starting a hedge fund include creating an investment team, defining your investment process, identifying investment objectives, selecting a hedge fund vehicle or formation type, and then deciding which administration, prime brokerage and auditing/accounting service providers the fund will engage. Many hedge funds start down this path but never successfully form their funds or run profitable businesses. While tracking well established hedge funds is relatively simple, nobody knows exactly how many small hedge funds are started each year because they are not required to report to any central database, directory or government body. As funds grow in size they tend to register with various organizations to comply with state or national laws or market their portfolios, but many funds do not bother or are not required to complete these steps within their first few years of operating. Hedge Fund Salary: A single manager Hedge Fund CEO Salary varies from $475,199 to $639,847. It could be much more than that, depending on the amount of years of experience of a Hedge Fund manager, the salary could reach a substantial amount of $2,238,428. Hedge Funds can generally be set up by most major banks or legal practices but a new trend has been for smaller one-stop-shop companies to provide comprehensive solutions.
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