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Bryan Johnson Benedicte Gravrand, Opalesque Geneva for New Managers: Bryan Johnson, founder of Johnson & Company, a marketer for emerging managers based in Austin, Texas, said on Opalesque TV that almost 89% of all hedge fund managers never get over $100m in assets under management (AuM).
He saw that it was a challenge for emerging managers to raise assets when he founded his firm in 2010, he said, and that it often led to closures: "The principal reason why it's more challenging is most managers do not have a structured disciplined and a focused marketing process."
The three principal mistakes that can lead to a fund’s early death, he said, are:
1. Not realising they are starting a business.
2. Thinking the allocation process is about performance. "The principal reason is most managers believe that the allocation decision is a one metric criteria, that it's all about performance, and there was a time that used to be true." It was true before the 2008 crisis, but now "process articulation, clear, consistent, concise, compelling, regulatory compliant process articulation is the key to raising assets in this environment."
3. Chasing the "Institutional Unicorn", not knowing where is their real marketing opportunity. "A lot of them go after institutional investors ...................... To view our full article Click here
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