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From Precy Dumlao, Opalesque Asia:
As sophisticated investors have become more cautious since ’08, it has become more apparent to hedge funds that they should project themselves as a “good brand”. Armed with this knowledge, London-based hedge fund consultant Material Difference looked into the importance of hedge fund branding for asset raising.
In a white paper, Lucy Meiland and Nisrin Metcalfe-Zerekli of Material Difference looked into data over the past 10 years and found that hedge fund groups have retreated into a world of navy blue and grey in an effort to belong. “Gingerbread men have more individuality, but in truth every fund is interesting and unique—they just don’t demonstrate it properly,” explained Meiland.
Reasons for investing
Hedge funds try to differentiate themselves through performance, strategy, risk management, infrastructure, independent oversight, etc. These are key factors in the management of the brand as it generates emotional response from investors, explained the authors. However, not all hedge fund groups do address their rational for investing.
According to the authors, identifying your hedge fund through these factors does not really mean it is “different” from its peers. It simply means the fund belongs to a group. Belonging to a group does not necessarily impact negatively on a brand, but identifying your hedge fund solely as a member of a gro...................... To view our full article Click here
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