Thursday, December 26, 2013

New Alfidi Capital Flowchart: Launching a Hedge Fund

I've published a new flowchart satirizing the process of launching a new hedge fund.  Check it out at the Alfidi Capital page on free flowcharts.  It's the one called "Launching a Hedge Fund" in case you can't figure it out.  This one took me about three years to complete.  I kept starting it and redoing it because I wasn't satisfied that I had captured the spirit of the typical hedge fund manager.

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.