Which marketing strategies should emerging managers pursue for 2014 to be seen and heard as well as understood by investors in a crowded marketplace? What are institutional investors really looking for? How can branding help? Will the JOBS Act provide real benefits? These considerations and related questions framed a roundtable discussion that I led for a group of emerging managers in late January; initial takeaways are shared below.
Clarity of investment philosophy, followed by risk management infrastructure and identifiable source of alpha are considered the most important factors in fund manager selection by institutional investors, according to SEI’s 2013 Global Survey of Investors – “Six Ways Hedge Funds Need to Adapt Now.” Seven in ten investors agreed “there are too many look-alike strategies.” Read more >>>
How can emerging managers be widely seen and heard by investors? Let’s begin with actionable opportunities, tips and recommendations.
1. Take advantage of industry databases (see minimum list below) – Cast a wide net by listing in as many as possible and be sure to provide for updating time each month without interruption. Furthermore, if performance reporting is not maintained, the manager will be removed after approx. 75-90 days, thus undermining initial visibility efforts, according to industry research guru Meredith Jones. For managers with a specific geographic focus such as Asia or Europe, it makes sense to list in AsiaHedge, Eurohedge or Eureka products, adds Jones.
2. Thought leadership – Become a go-to contact for your particular expertise as a key bridge to building brand equity.
- Develop a content marketing strategy incorporating unique, timely and educational messages. Integrate a workable editorial calendar that provides room for flexibility as new opportunities and newsworthy ideas or announcements surface.
- Optimize your thought leadership with public relations initiatives. Consider integrating a combination of potential earned PR and paid sponsored content. Media visibility can reinforce brand building efforts and overall credibility.
- Use social media platforms and tools including LinkedIn, Twitter and blogging to cast a wide net and expand your following. Be sure to integrate these tools with your web presence as your digital hub.
3. Combine cyberspace appearances and in-person networking with investors.
- Optimize an increasingly wide net of online opportunities for communications, reporting and listings combined with a judicious selection of events to participate in person. Focus on those that offer one-on-one investor meetings and opportunities to present a strategy or market views.
- Selectively participate in hedge fund industry programs where the anticipated investor turnout is favorable for managers. Embrace opportunities such as Hedge Connection for turnkey marketing solutions via online social potential (including posting of manager profiles) combined with in-person events to establish relationships with investors.
- The JOBS Act is not a panacea! Keep in mind that small managers who are not SEC-registered do not gain any latitude from the JOBS Act. Consult your legal counsel for precise restrictions.
- The onerous compliance criteria to participate, extra reporting baggage and overall costs are really choking small managers rather than helping them communicate. Moreover, commodities funds do not benefit while the CFTC and SEC are not yet harmonized. Read more >>>
