The investment strategy creates the potential. The right infrastructure turns it into a professional, stable hedge fund built to grow.
“Do what you do best and outsource the rest.”tom peters (based on Peter drucker concept)
Important notice: This service covers the advisory, planning, coordination and control of the process of building the infrastructure a hedge fund requires in order to be established and to begin operating. It is delivered, as needed, in cooperation and coordination with the relevant professional advisers, and does not replace the legal, tax, accounting, audit, administration or any other professional advice or service required in order to establish and operate the fund. Likewise, we bear no responsibility for the investment strategies the fund selects or for their results.
Two or three partners who have decided to take a proven trading strategy into a hedge fund structure, and want to build the infrastructure from scratch into a fund that works.
The fund is running, but the infrastructure was built on the move and under time pressure. What is needed now is to put procedures, controls and permissions in order, reconcile economic against accounting valuation, and make operations efficient enough to grow on.
The strategy is proven and the seed capital is in place; what is missing is infrastructure built to fit an existing institutional operation.
A proven strategy is necessary but not sufficient. An Israeli hedge fund is a legal entity with a dual structure, a dedicated tax arrangement with the Tax Authority, a segregated set of accounts, an external administrator holding signature authority, an auditor, trading systems and data vendors, a back office, procedures and controls — and above all of these, a system has to be built that holds them together as one whole.
What trips funds up in the first two years is not necessarily the market. It is the infrastructure: transparency towards investors, a fee structure that was never defined tightly enough, a missing liquidity mechanism, risk policy and controls, separation of duties that was never established, working procedures, or misunderstandings between the partners. Together these are what signal stability, efficiency and credibility to investors.
Decisions settled in the first months — the type of ruling, the fee structure, redemption terms, authorised signatories — set the fund's room to manoeuvre for years. Strategic and operational decisions are what produce the control mechanisms behind stability, liquidity, efficiency and credibility.
Strategic thinking, defined objectives and execution, alongside hands-on experience establishing an Israeli hedge fund from the ground up — producing the full set of foundations: corporate structure, founders' and partnership agreements, corporate governance, operating infrastructure, permissions architecture, back office, control processes and risk-management requirements, client management and marketing — working with lawyers, auditors, banks, the administrator and vendors.
Alongside substantial experience upgrading operating, control and technology infrastructure at Bank Leumi and at an independent trading firm, including proprietary equity trading at volumes in the billions of shekels a year — and an understanding of what shareholders, traders, control staff, external counterparties and clients each need.
We know which foundations matter enough to lay at formation, so that what is built on them is a stable fund that can grow.
The infrastructure built is identical in both tracks — all twelve modules in full.
Project-based, including a full handover pack
Right when someone inside the fund is ready to take the operational wheel the moment it is handed over.
Ongoing operation, tailored to the fund
Right when the fund would rather keep its team on strategy, the market and fundraising — not on operations.
We work with a limited number of funds at any one time, under full confidentiality and discretion. Every engagement is built around that particular fund's structure, strategy and stage of development — not to a fixed template, and not as an off-the-shelf service.
The work runs in parallel rather than in sequence, around the turnaround times of the bank, the Tax Authority, counsel, the auditor and the administrator
Mapping the strategy, the investor base and the expected scale of capital. The phase ends with a decision on the model, and a work plan with a timetable and a budget.
Incorporating the entities, drafting the agreements with counsel, approaching the Tax Authority, selecting an administrator and an auditor, opening the set of accounts and embedding the working process with the administrator. This is the long phase, and its duration is largely set by external parties.
Opening trading systems and data vendors, written procedures, numeric risk limits, the back-office budget and the first investors — closing a full trial month and issuing the first investor report.
An independent, operating fund with every piece of infrastructure its formation required: a first set of working procedures, a standalone control model, and training for the team that will keep running it. Every deliverable is entirely yours. Confidentiality assured.
DOB brings to the formation process a perspective built over years in capital markets, in trading and in management — alongside hands-on experience establishing and running a hedge fund.
That experience lets us see the formation of a fund not as a collection of tasks and vendors, but as a single system that has to work properly together: from the structure and the processes, through the interfaces between the professional advisers, to the needs that surface once the fund starts operating and begins to develop.
The professional background of DOB's founder includes trading and management in capital markets, among them at Bank Leumi and in independent trading, and subsequently the establishment and joint management of an Israeli hedge fund. The combination of familiarity with the investment world and practical experience on the business and operational side of a fund is the basis of DOB's approach.
Rather than building each component separately, we look at the whole picture — and help build infrastructure that fits the fund, its strategy, and the way it is designed to operate.