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Hedge Fund Business Financial Plan – Profit & Loss Statement

Are you writing a business plan for a hedge fund? If YES, here is a sample hedge fund financial projection, cost, profit & loss statement, forecast. The cost of starting a hedge fund is in the two fold; the cost of setting up the office structure and of course the capital meant for investment.

Our Budget & Expenditure

The amount required to invest in hedge funds could range from 1 Million US Dollars to even multiple Millions of Dollars. So you must employ aggressive strategies to pool such cash together. As regard the cost of setting up the office structure, your concern should be to secure a good office facility in a busy business district.

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It can be expensive though, but that is one of the factors that will help you position your hedge fund firm to attract the kind of investors you would need. This is the financial projection and costing for starting JB Moses & Associates, LLP;

  • The Total Fee for incorporating the Business – $750.
  • The budget for basic insurance policy covers, permits and business license ,500
  • The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
  • The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
  • The cost for purchase of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
  • The Cost of Launching your official Website – $600
  • Budget for paying at least three employees for 3 months plus utility bills – $10,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – ,500
  • Investment fund – 1Million Dollars
  • Miscellaneous: $1,000
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Going by the report from the market research and feasibility studies conducted, we will need $150,000 excluding $1M investment capital to successfully set – up a medium scale but standard hedge fund management firm in the united states of America.

Generating Funding / Startup Capital for JB Moses & Associates, LLP

JB Moses & Associates, LLP is a business that will be owned and managed by Johnbull Moses and his business associates. They are the sole financial of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

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These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

Hedge Fund Financial Projection

Sources of Income

JB Moses & Associates, LLP is established with the aim of maximizing profits in the hedge funds and investment services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. JB Moses & Associates, LLP will generate income by offering the following investment related services;

  • Offering equity long bias, equity long-only, equity long/short and equity market neutral funds
  • Offering fixed income funds
  • Offering emerging market funds
  • Offering event-driven funds
  • Offering multi-strategy funds
  • Offering macro funds
  • Offering distressed securities funds
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Sales Forecast

One thing is certain, there would always be accredited investors, top corporate executives and wealthy individuals who would need the services of tested and trusted hedge fund managers.

We are well positioned to take on the available market in New York City and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City to other cities in the United States of America.

We have been able to critically examine the hedge fund management market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in New York City.

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Below is the sales projection for JB Moses & Associates, LLP, it is based on the location of our business and the wide range of investment management services that we will be offering;

  • First Year-:$250,000
  • Second Year-: $550,000
  • Third Year-: $1,500,000

Offering fixed income funds : Each investor will invest $5,000

  • 50 investors will cost $250,000



  • The Amount needed to acquire a suitable Office facility in a business district for the remaining 6 months (Re – Construction of the facility inclusive) – $40,000.
  • Budget for paying at least three employees for the remaining 9 months plus utility bills – $30,000
  • Other miscellaneous expenses – $9,000
  • Office supplies (printer, stationaries et al) – $10,000
  •  Credit card processing fees – $1,000
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N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.