
Odds on Open Why 20% of Hedge Funds Fail After One Year - Claudia Quintela on Why Managers Need Business Sense
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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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Partners Had Different Runway Assumptions
- Cláudia once asked two partners how long they could stay unpaid and they gave different answers, revealing no shared runway plan.
- She then raised $150m for them within months, but the mismatch nearly derailed their launch.
Storytelling Is A Core Asset
- Communication and storytelling are a core leg of a fund's credibility, not just transparency.
- Great managers like AQR stay top-of-mind by articulating ideas clearly and persistently.
When Performance Falls, Talk More
- When performance falls, communicate more and explain what happened, what you learned, and what changed.
- Report bad months promptly; hiding poor performance destroys trust.
