Separating asset management from BO, RM, legal

At the moment I'm not seriously considering starting my own fund, but just to plan (way) ahead, I'd appreciate some advice on this topic.

Imagine for a moment that fund capital is not an issue. Say I know people who would trust me with $20 million to invest on their behalf. I'd be running a one man show, or at most hire one person to handle tech issues, data etc.

Is it possible for a tiny fund like this to outsource back office functions / risk management, and focus solely on making investment decisions and doing research? Or are some of these supporting functions even required (by law) in case of a tiny fund?

Aren't there large asset management firms that focus only on investment decisions and portfolio management, i.e. the entity with fund capital will just hire a portfolio manager from the Asset Management firm, and handle all other stuff either on their own or by outsourcing them to someone else? Would this not work in a smaller scale?

To sum it up, instead of starting your own fund, is it possible to start a business focusing only on investment decision making and let some other party take care of all the rest?

 

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