We’ve had a long tradition of highlighting startups and giving them a chance to tell their story here on the SmallBizPod blog. Here’s one with a difference. Stay tuned to find out whether the daring Hound will succeed in getting a hedge fund startup off the ground.

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“You’re trying to set a hedge fund up now in these market conditions???!!!” This is typical of the baffled response I get when running this fact past folks recently. The timing for the outsider looking in seems at first glance to be questionable at best – akin right now to setting up a Gordon Brown Fan Club Merchandise store.

However my view has always been that if any new business looking to gain traction can tap into the zeitgeist of the moment and understand the hopes and dreams of the target client in full context of the environment, good or bad, then this can be used to advantage. By then putting some original thinking around established problems or received wisdom, it’s often possible to turn a potential downside into a compelling upside and in fact use that as a marketing opportunity.

And so it is in this context that we start to market ‘the hedge fund for the hedge fund cynic’ - CrystalClear Capital Management. Everything that Sub-Prime and the resulting Credit Crunch fiasco represent we stand against – unnecessary and dangerous complexity, blackbox PhD strategy, illiquidity, and uncontrolled leverage.

Instead we bring transparency, accountability, ruthless risk management and an intuitive concept that can be understood by anybody looking to invest.

In this way we have taken what could have been a tough backdrop and looked to turn it round to our advantage, by providing for individual and institutional investors an opportunity that understands and then allays their fears in regard to the financial markets right now. It also helps to explain to folks that hedge fund investment is no longer the preserve of the uber-wealthy. Minimum investment sizes are lower than many would imagine so seeking out the higher returns that can be achieved in volatile markets, whilst still ensuring risk is comprehensively managed, is within reach of many as part of their portfolio.

We are just beginning to start our marketing phase. Considering I’ve still got the day job at a big investment bank on the go too, until we get a critical mass of capital to launch, it’s a lot of work! I’ve not had this many balls in the air since I went naked skydiving on my stag weekend with 12 other lads. The moonlighting nature of the venture explains my pseudonym “HedgeFundHound” and the corresponding email contact details. Can’t have someone Googling me and finding this blog quite yet! However if this thing takes off in the next few months, a successful small business is created and I quit the day job. Then there will a ceremonial unveiling of my true identity…..which will mean nothing to anyone!

Next blog – “The Instant Hedge Fund – just add water”

Would love to hear from anyone with any questions, comments or suggestions!

financial markets | hedge funds | startup blog