Hey, Want A Job Starting and Growing a Hedge Fund?

Recently, WLV closed on our second deal, CFX.  CFX is a two sided marketplace that trades illiquid assets. If there is anything that me, my partner Kenny and the majority of our LPs know is where to identify a trading opportunity.  We found one at CFX.

We are in the process of setting up a Chicago based hedge fund and hiring a COO.  It’s a startup.  We see a lot of edge trading in this market.  We think it’s a good opportunity for someone who is not a “trader type” to enter the hedge fund world and make some money for themselves.  You are going to have to be patient and take some time building it.  This is not like hedge funds that go into stock or futures markets.

If you successfully grow it, it can become quite large.

You may not live in Chicago currently, but you are going to have to move to Chicago for this opportunity.  Once you are established you can probably live any where you want in the US.

You will have to develop a strategy and accumulate a position.  You will also have to figure out ways to unload that position.  Except it’s not just buy and sell in one marketplace.  You could sell an accumulated position to a financial institution, a corporation, a family office, a government treasury or another big pool of capital looking for this sort of asset.  Sometimes you will have the opportunity to flip the asset on a central marketplace.

Must Have Candidate Qualifications:

  •   Entrepreneurial minded self starter who enjoys collaborating, but can work alone
  •   5+ years finance experience with knowledge of real estate
  •   Proven history of leading interdisciplinary endeavors
  •   Excellent oral and written communication skills
  •   Business development experience
  •   Process oriented “attention to detail” person

Somedays you will wear jeans and a t-shirt.  Some days you will have to put on formal clothing and present to potential customers.  You will need to be able to transverse the entrepreneurial world and the buttoned up world of corporate banking and insurance companies and be comfortable in each.  You will need to deal with a lot of different people and personalities.  There is a lot of paperwork involved with the position. 

Obviously, the fund doesn’t care about race, gender, sexual orientation, or political orientation. You just have to be a “word is your bond” kind of person and nice to be around.  We care that you can do the job and can execute.

You will work closely with and collaborate with an investment committee.  Responsibilities are varied, but generally:

  • You will enter into and strategically accumulate positions.   This will require creating an analysis model to properly price the assets and execute the trading logic on an opportunistic basis.
  • Manage risk and portfolio administration. This will including hedging as necessary, but also overseeing bookkeeping, accounting, and tax filing (all outsourced).
  • Exiting positions.
  • As this is a new fund, you would be expected to refine the strategy and oversee the    fund formation process.  As the fund grows, you will hire new people to work for you to expand fund operations and breadth.
  • This position will require the operator sell asset bundles to customers they develop.
  • The investment committee will drive the capital raising effort.  The COO could be involved in the fund raising process.  The COO will have to create marketing materials in line with the strategy.
  • We do not expect you to have deep experience doing all of the above. We do expect you to take full advantage of the investment committee’s resources.

We have identified some candidates for the investment committee but not all.  The investment committee will consist of experts that have:

  • managed a hedge fund
  • traded this particular form of asset
  • a quantitative/algorithmic person who has traded
  • a person who understands how to bundle and securitize these assets for institutions.

We currently envision a four to five person investment committee.  The future COO will speak with some of the people on the investment committee before taking the job.

If this first effort is successful, the fund can expand into market-making opportunities with other illiquid assets.  If the first effort is successful, we assume that the fund size will grow, exponentially increasing the potential financial reward for the COO.  

If you are interested in learning more about this opportunity and you meet the necessary qualifications, please email me and I will put you in touch with the appropriate people.  

Please don’t random email me or email me and try to tell me you can “grow” into this job.  This person will have to hit the ground running and while there will be a lot of collaboration and mentorship with the investment committee, we cannot be full time trainers.   

2 thoughts on “Hey, Want A Job Starting and Growing a Hedge Fund?

    1. As you know, it’s all about execution. So far we have a pretty awesome team. We have one piece to put into the puzzle as advertised. We get that and it should be pretty cool. I will be in your town on Wed.

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