Here's what not to do if you want to launch a hedge fund

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A group of hedge fund allocators revealed the biggest “red flags” that stop them from placing money with an emerging manager.

First, there is the classic “red Ferrari syndrome.”
There are some signs that are less obvious though.

“Bad coffee,” said Kent Clark, head of the Alternative Investments & Manager Selection hedge fund strategies investment team at Goldman Sachs.

Short seller Carson Block, the founder of Muddy Waters Research, has revealed how he spots his short targets, and Bill Gross of Janus Capital took a little time out to tell everyone to sell.

In Wall Street trading news, stock trading specialists are being asked to give their colleagues in the fixed-income markets a hand. The bond-trading veterans aren’t so sure they want the help.

Also, a new SEC filing reveals some uncomfortable truths about how stock trading works on Wall Street.

If fintech is your thing, here’s what happens when an old-school finance firm buys a startup, and here is what a startup CEO had to say about working with a legacy financial institution.

Lastly, here is one chart that should strike fear into investors everywhere.

Here are the top Wall Street headlines at midday:

Wall Street banks are going all out to hold onto junior bankers – Credit Suisse will establish a fast-track program for top-performing investment banking juniors.

Startups are partnering with the Wall Street firms they’re meant to replace — for one important reason The financial-technology, or fintech, industry has exploded, and big banks are sitting up and paying attention.

Howard Marks has made $900 million from his investment in ‘Bond King’ Jeff Gundlach – “Bond King” Jeff Gundlach has made Howard Marks a lot of money.

Banks build ETF businesses as growth stalls in bond trading – Wall Street banks are ramping up businesses that trade exchange-traded funds full of bonds, a bright spot of growth at an otherwise bleak time for trading but one that may carry unappreciated risk.

SLØK: The US rates market appears ‘significantly mispriced’ right now The US 10-year yield ended 2015 at 2.30% before tumbling almost 80 basis points to a low of 1.53% on February 11 amid fears of a global recession.

Ferrari is counting on this car for its future — and we drove it Ferrari shares have endured a slide since the IPO, down 30% since last October.

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