Earlier this summer I attended the IMI alternative consultant forum, a one day event in Greenwich. The event was organized well – excellent speakers and insights. I will definitely look to attend future IMI events.
At the conference I had occasion to meet Todd Peters from Lyndhurst Consulting who gave a spirited presentation on the new hedge fund sales cycle. He posed some tough questions while offering key insights on how to approach this increasingly important channel.
According to Peters, the events of the last 12 months have caused consultants to do some deep soul searching with regards to their alternative investments.
• Did we really understand the investment strategy?
• Did we really validate the manager’s assets and pricing mechanisms?
• Did we really put enough emphasis on the strength of the organizational structure?
• Did the largest investment organizations really equate to safety?
And managers need to begin to open up their ears and ask questions of the consultants before launching into the sales pitch.
1. What type of end clients do you focus on?
2. How does your consulting firm make investment decisions?
3. What business rules do you have?
4. What are your minimum requirements for investment managers?
5. Do you utilize single strategies or fund-of-funds?
The era of transmit and not receive is over.
The full presentation below.