Back in the dot.com era, the conventional wisdom was that anyone could start a web company; all it took was a few computers and smart people (preferably from Stanford). Not too long ago, the same held for hedge funds [0]; all it took was computer and some initial investors. Well, times have changed, and the myth that hedge funds are easy to start has exploded. These days, you pretty much need a seeder. Consider the case of Manhasset Capital [1], which shut down after losing its seeder. What does it take these days to start up successfully? According to AllAboutAlpha.com, you need about $20 to $25 million to start. That might get you another $50 million from a seeder. And then you really need to perform to draw additional funds. It's a tough road. No wonder large hedge funds continue to carve out a more significant share of the market.  

For more:
- here's the AllAboutAlpha.com article [2]

Related Articles:
Hedge fund Manhasset Capital to shut down [3]
Hedge fund launches slow down [4]