One of the most time-sensitive projects I focus on at each start-up is the design of a marketing strategy and the engagement of the best people in the HF industry to execute that plan. To my surprise, quite a few portfolio managers choose to launch their firms without an effective game plan when it comes to fundraising for their own businesses.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=a0a97bf4-777b-48a9-a81c-eda2020d2f53)
The feedback I hear most often when I present such portfolio managers with a marketing strategy is that regardless of where their firm representatives travel to and whom they contact, they should just focus on approaching as many prospects and trying to sell the new "product." My reaction is "are you really just selling a product?"
Let us think about what a traditional hedge fund offers:
- Access to some of the brightest investment professionals in the financial world who choose to provide their services only for the most qualified, knowledgeable and experienced investors
- Trust in a portfolio and risk management team which seeks to identify those unique opportunities that average market participants cannot locate as efficiently or cheaply (i.e. the team has a unique investment edge)
- Ability to invest capital in a (fund) structure that provides the portfolio team with the greatest flexibility, even if the investor has to abide by numerous guidelines when it comes to high fees or long investment lock-up periods
As long as hedge funds are such unique and non-mainstream investment vehicles, then why should any portfolio manager assume that a basic institutional fundraising campaign is the most effective marketing strategy for the new hedge fund? I often propose that a hedge fund avoid focusing on "pushing" products, and instead spending most of the firm's marketing resources on the education of the right target investor base.
For example, start by identifying a small target prospect group who tends to appreciate your firm's investment edge and has had some prior experience investing or at least evaluating similar strategies. Arm those investors with the right data points and firm facts over the following 1-6 months. Slowly expand that prospect group as you nurture the initial relationships and identify similar investors. Accept upfront that the firm is not selling research, a product or service everyone is familiar with--and that this relationship building cycle can take a while.
By avoiding the typical financial firm marketing mindset of "selling something," portfolio managers who later own and run their hedge funds have a greater shot at building a long-lasting business with investors who want to "partner" with them.
Wow..very nice. Bookmarking this page now.
You realize thus considerably on the subject of this topic, made me in my opinion believe it from so many varied angles. Its like men and women aren't fascinated until it is one thing to accomplish with Woman gaga! Your personal stuffs outstanding. All the time care for it up!
I became just browsing occasionally as well as you just read this post. I need to admit that we are within the hand of luck these days if not getting such an beneficial write-up to see wouldn't are possible for me, at the really least. Extremely enjoy your content.
I've learn some excellent stuff here. Certainly value bookmarking for revisiting. I surprise how much attempt you place to create any such fantastic informative site.
do forum help much with a lot of novice answering question?