
Odds on Open Why 20% of Hedge Funds Fail After One Year - Claudia Quintela on Why Managers Need Business Sense
Jan 22, 2026
Cláudia Quintela, founder of Vibe Advisors with 25 years in hedge fund advisory, shares her insights on why 20% of hedge funds fail in their first year. She emphasizes the importance of understanding motivation for starting a fund and highlights what investors seek in a strategy. Cláudia discusses the necessity of thorough preparation for capital raising, effective communication, and creative negotiation techniques. She offers practical advice on managing investor relationships and stresses the value of networking and long-term relationship building.
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Know Your Why And Runway
- Ask yourself why you want to start a hedge fund and if you can endure the hardships of entrepreneurship.
- Plan your runway and know how long you can operate without paying yourself before seeking external capital.
Prove Track Record And Capacity
- Prove any track record with verifiable, portable, audited evidence and be ready to show P&L and drawdowns.
- Assess capacity and scalability honestly so you know which investors to target.
Choose Your Role And Fund The Ops
- Decide whether you want to be a markets person or a business builder and hire help for the other role.
- Budget for legal, compliance, and ops—$10m of personal capital rarely covers institutional infrastructure.
