Tue, Jul 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds should approach marketing in four stages of fund development lifecycle – Merlin Securities

Wednesday, August 25, 2010
Opalesque Industry Update - Hedge fund managers should be tailoring their marketing strategies to address the needs of their investors, says a new paper by Merlin Securities, a New York based prime brokerage firm.

In a newly published white paper “ The Spectrum of Hedge Fund Investors and a Roadmap to Effective Marketing”, Merlin Securities advises of the four stages of fund development from launch through to major institutional investor fundraising, and the focus on different services and infrastructure capabilities a fund manager should have to meet the needs of the very different investors who will become part of your client base throughout your fund's lifecycle.

While pre-financial crisis many investment managers invested in infrastructure to build strong operational foundations expecting aum growth across the industry to continue at a strong pace, as AUM levels have declined, even as hedge fund performance has largely remained steady, many managers are facing business management challenges in addition to the expected challenges of portfolio management.

“Today’s climate necessitates difficult decisions both for the top and bottom lines.” Observe Ron Suber, John Quartararo and Patrick McCurdy, the papers authors. The trio looks at various investors into the hedge fund universe and how to best leverage their needs during the different phases of asset raising.

“Clearly the landscape has changed dramatically for hedge fund managers and the investment community over the past several years. And so, too have the investment approaches of each level of the spectrum changed. For hedge funds seeking to reach the next level of AUM, it is important to understand where the fund is in its lifecycle, which investors should be targeted and what each of those investors requires. Only then can a fund begin to organize its overall marketing strategy to meet the increasingly stringent investor requirements.”

The full paper “The Spectrum of Hedge Fund Investors and a Roadmap to Effective Marketing”, can be downloaded here: Source

kb

See our May-2010 articles:
Opalesque Exclusive: Merlin's seven values for hedge funds Source,
and
Opalesque Exclusive: Merlin issues a twelve-point guideline to hedge fund best practice Source

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro

  5. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm