Incubating a Fund, whether Hedge Fund or Mutual Fund always makes a lot of sense:
- The Institutional Investors will not invest unless the fund as a proven track record.
- Said track record is not relevant before several years and
- Said track record must have been obtained on a minimum mass of Assets Under Management to be considered relevant in the institutional investors’ investment decision process.
- The fund cannot bargain good banking and securities brokerage conditions without a this minimum mass of Assets Under Management thus its performace will be less good.
- The founders of the fund cannot cover their expenses during five years without this minimum mass of Assets Under Management.
