We’re still very curious bout this buzz that former MF Global chief Jon Corzone will launch his own hedge fund, so we asked a professional fundraiser at a hedge fund for his thoughts on the matter.First we asked him for his general impressions of Corzine pondering a hedge fund:
It is probably his only option. He probably has enough of his own money to do it and can fundraise enough to get a decent launch amount. He probably will have a hard time attracting and retaining talent. … The odds of Corzine’s fund succeeding are very low. I doubt he has the patience/personality to try and keep his investors happy and in the fund during periods of underperformance.
Then we asked him how, as a fundraiser, he would pitch Corzine’s fund to potential clients, he revealed:
Some managers’ value proposition to investors is their network of contacts and their ability to source good deal flow and investment opportunity through their channels of influence. He may be able to convince just enough people that this network is his edge and also he’ll probably some hodgepodge investment process and strategy around it. The core will be the network though.