I believe this flowchart summarizes the most important steps that hedge fund managers perform when launching some new way to gamble with other people's money. My regular readers know that I have always taken a very negative view of hedge funds. They are costly ways to underperform passive index investing using very questionable strategies. That is not how I would ever try to generate alpha. This flowchart gives the hedge fund sector the satirical review it deserves.
Hedge funds do a poor job of delivering value to their investors. My flow chart does an excellent job of giving investors a peek inside a hedge fund manager's mind.