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Alternative Market Briefing

How do emerging hedge fund managers build $1bn AUM ?

Thursday, October 11, 2018

Laxman Pai, Opalesque Asia:

Alternative Investment Management Association (AIMA)'s new research for the aspiring billion-dollar hedge fund manager points out the importance of effective marketing, aligning the business with the investors and maintaining efficient working capital levels.

Produced by AIMA, alternative prime broker GPP and Edgefolio, 'Making it Big' surveyed asset managers and industry allocators representing an estimated $500bn in total hedge fund AUM with the aim of charting out a road map for all emerging and start-up hedge fund managers as they make their way to $1bn AUM.

The report includes responses from 155 managers and, crucially, also reflects the opinions of 60 hedge fund allocators, accounting for approximately $89bn identifies six key factors for for all emerging and start-up hedge fund managers to focus on when growing their businesses:

1. Deploy an effective marketing strategy

Funds managing between $500m and $1bn sourced none of their latest investments from third party marketers, instead using their own personal networks and existing client referrals.

Funds managing between $100-$500m and those managing over $1bn all hire an in-house marketing specialist.

Of critical importance to investors was meeting a fund's key founding partners and portfolio manager, and maintaining that access during and after the investment process.

2. Identify opportunities to punch above your weight

Funds t......................

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