We welcome Hedge Connection associate Mike Lucia to the The Final Meeting. Mike will be reporting on various capital raising headlines and informative articles scoured from industry news.
With my current role at Hedge Connection, I am always searching the internet for information about capital raising ideas for our hedge fund clients. I’m starting this monthly letter with the intention of helping managers stay on top of current news articles that feature marketing and capital raising information for their fund. Throughout the month, I will be collecting the best articles from different publications and posting them here. I welcome your comments and let me know if you come across a relevant capital raising article and I will post it.
5 Capital Raising Strategies For Hedge Funds And CTAs
This is a great article which features some very important tips for emerging managers looking to raise capital. I agree with the majority of what Kevin has to say and really enjoyed the paragraph about how important it is to emphasize what makes you different from the competition. Remember: you are competing with over 7,000 funds who employ the smartest minds in the world…what makes you stand out from the rest?
Marketing Your Hedge Fund – Communication Primer
Be sure to read the basic facts about any audience. These are great and pertain to any and all presentations you may give in your career. 1) No one wants to feel stupid; 2) Confidence, articulateness, and organization inspires trust; 3) If the audience cannot sense a connection at some level they are lost; and 4) Listening is the greatest skill of all. The author goes into greater detail on each one of these topics which prove helpful when pitching potential investors.
Recent Allocations
Who said investors aren’t allocating these days? It looks like there’s been some nice activity in recent months according to the articles below. From what I’ve seen and heard, the big guys are eating first (the largest funds will be closed by Q2) and the smaller funds will begin to see inflows shortly thereafter. For those of you who have been frustrated in your marketing efforts, keep in mind, many funds that have been closed for many years were suddenly open to investors over the last 24 months. “Opportunities of a lifetime” as one investor recently told me. Once these funds close, investors will have to put their money somewhere. I am a firm believer that you should always be in front of prospective investors so when the time is right for them to allocate, you are in the front of their minds. You can’t get hit if you’re not in the traffic.
FierceFinance: Hedge fun inflows pick up
BusinessWeek: Hedge-Fund Assets Rose by $4.6 Billion in December, Report Says
MarketWatch: Investors pour $14bln into industry in fourth quarter
Congratulations are in order for Finisterre Capital (Hedge Connection Club Hedge Member) who was just awarded a $250 Million allocation by the New York State Common Retirement Fund. Hard work on your marketing plan does pay off folks!! We wish Finisterre continued success.
I look forward to bringing you the next installment of Always be Marketing and don’t hesitate to contact me if you have any questions on the Hedge Connection platform.
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