According to Citi Prime Finance, hedge fund managers need at least $300 million in AUM to break even.  See “Citi Prime Finance Survey Reveals Levels and Mix of Expenses Incurred by Hedge Fund Managers of Different Sizes, Firm Profitability and Margins, Use of Chargebacks and Impact of Regulations on Expenses,” Hedge Fund Law Report, Vol. 7, No. 1 (Jan. 9, 2014).  According to a paper recently published by Rothstein Kass, “There are plenty of successful funds that launch with $50 million, or even $10 to $20 million, for that matter.”  Who is right?  In a recent interview with the authors of that Rothstein Kass paper, we tackled this question, as well as many others on the accounting and legal mechanics of starting and sustaining a hedge fund management business.