Keys to launching a successful hedge fund

The industry-wide formula for success for new and aspiring managers is as follow:

- Previously employed with a larger established fund, managing a large pool of capital

- Have endorsements from previous employers

- Have returns or a model portfolio that can be analyzed

- Have skin in the game (commitment of capital to the fund)

- Can garner friends and family capital

While it is not necessary to have all the criteria listed above to be successful, having none of 

the above will increase the odds of failure at launch. There may be other options available for managers who do not meet the criteria above.