www.bloomberg.com
Running a multistrategy hedge fund is prohibitively expensive due to the high costs of infrastructure and talent. Establishing one from scratch is even more capital-intensive, requiring significant upfront investment in risk systems, trading technology, and compliance frameworks. Unlike single-strategy firms, multistrategy funds must maintain diverse teams and separate operational support for each distinct strategy. These staggering overheads mean that new funds face immense financial barriers to entry, often necessitating hundreds of millions in initial capital just to break even. Ultimately, the complexity and scale required make these funds a venture reserved for well-capitalized institutions.
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