Pfft Other People's Money, dude so retarded. That's not the context by which I was talking. As in what is the process of getting people to invest into a fund, legal processes, and etc.
It's a lot cheaper to start a boiler plate hedge fund than a mutual fund. I was told by someone in the industry its about $2 million you'd need to get it going and such. You have to remember its being audited and needs compliance people, etc. You can outsource this, but then there is the AUM issue. You need enough sales and management fees to keep it all going. In short, mutual funds are for people with lots of money to spend. And besides, who with any kind of granularity and upside to their trading would want to be associated with a career path rife with mediocrity and that dread "buy n hold" mentality...