In this month’s post I continue to cover the allocations to the larger funds (be patient smaller funds, your time is coming) and the infrastructure characteristics investors look for in funds that attract the biggest/best alternative investors. I also touch on how larger funds have recently put more emphasis on their marketing/investor relations departments. If the big funds are putting more focus towards marketing, why aren’t you?
Largest Launches from 2009…only one fund launched with over $1 Billion AUM.
I agree with most of what Simon has to say in this article. For funds to attract large institutional investors they will be required to have a decent infrastructure. As one investor (who runs a $3 Billion dollar fund of funds) says, “If the PM is calling me to schedule a meeting, who’s watching your portfolio while your cold calling? The internal marketers set the meetings in any fund we invest with.”
The “2 guys and a Bloomberg” model no longer works and managers need to realize that you have to SPEND MONEY TO MAKE MONEY. Invest in marketing (Internal Marketers/Hedge Connection), infrastructure (quality employees), attorneys, auditors and prime brokers. These go a long way when it comes to attracting the real investor dollars in the alternative investment space.
This article offers an insight into how marketing roles at funds are becoming more important. These funds are all currently putting an emphasis on developing relationships with investors and are hiring the right people to maintain these relationships. They’re also using tools like Hedge Connection to seek out new investors.
Pension funds are now looking harder at Hedge Funds with Florida’s Pension System looking to finalize an allocation in the coming weeks with other pension funds/endowments to follow. This article also states that the firms with the best infrastructure have benefitted the most when it comes to attracting Pension Fund money.
Investors in Dubai are feeling more comfortable these days and will continue to feel this way for the foreseeable future.
Investors start plowing money back into industry: Och Ziff raises almost $1 Billion; Passport raises nearly $500Million.