HEDGE FUND CONSULTING & MARKETING STRATEGY
Agecroft Partners believes there are three critical steps involved in order for a hedge fund to be successful in raising assets in today’s competitive environment. These include the quality of the fund offering, the investor’s perception of the quality of the fund offering, and their marketing and sales strategy. Leveraging our founder’s experience in running sales for some of the largest investment firms in the world, Agecroft is uniquely qualified to help hedge funds through each aspect of this process. At Agecroft’s industry leading conference, Gaining the Edge, Don Steinbrugge describes the 3 Keys to Successfully Raising Hedge Fund Assets. To view the video click here. Below is a brief outline of Agecroft’s consulting and marketing strategy.
1. Quality of the hedge fund offering
The first step in the process is utilizing our institutional due diligence process to analyze the quality of the product offering across each of the evaluation factors investors use to select hedge funds, which are discussed in the “selection of managers” section of our website. We will then provide feedback on potentially enhancing any areas of weakness. For hedge fund clients we help raise assets for this is an ongoing process as we get feedback from the market place.
2. High quality marketing message
Many high quality hedge funds have difficulty raising assets because they do a poor job of articulating their message to the marketplace. The marketplace is highly competitive and hedge fund investors use a process of elimination in selecting hedge funds. This typically begins by screening the thousands of hedge funds in the market place, meeting with a couple hundred, having follow up meetings with a small percentage of these, and hiring a select few each year. Hedge fund performance tends to be a quantitative screen to eliminate a majority of managers, but once performance has reached a certain hurdle its weighting in the evaluation process is less important than most managers realize. It only takes one poorly worded answer to get a firm eliminated from consideration.
It is Agecroft’s objective to work with hedge funds to perfect their marketing message in order to ensure that the market’s perception of the firm is equal to reality. This requires a consistently delivered, concise and linear marketing message that identifies the differential advantages across each of the evaluation factors investors use to select hedge funds. It is important that the marketing message is consistently integrated throughout all the firm’s mediums of communication, including oral presentations, written materials, due diligence questionnaires and quarterly letters, and their website. A well prepared and accurate marketing presentation eliminates inconsistencies and helps foster a level of integrity when interfacing with potential investors.
3. Marketing and sales strategy
The most successful marketing and sales strategies are well thought out and are very process oriented. Agecroft works in partnership with our clients to ensure that they receive the assistance that is necessary to grow their business effectively and to maximize their time in focusing on doing what they do best: managing money. In order to maximize the probability of success, Agecroft adds value in the following ways:
The industry reputation of a hedge fund marketing firm has a direct impact on investors' perceptions of the hedge fund organizations they represent. Agecroft’s brand in the market place enhances the credibility of managers they represent and significantly improves access to institutional investors often at senior levels.
Identifying who to contact
The hedge fund industry investor base is highly inefficient. Public databases of family offices are of poor quality. It is challenging to identify which pension funds, endowments, foundations, insurance companies and sovereign wealth funds are making direct hedge fund investments, whether or not they use a consultant for hedge fund investments, and what type of relationship they have with their consultant. Agecroft's team has created one of the largest proprietary databases in the industry, and has developed strong professional relationships with investors with whom they are in frequent contact on a global basis.
Screen for suitability with manager’s strategy and investment style
Agecroft Partners' number one objective is to maximize the time of both the investor and manager. Our goal is to ensure that investors with whom we arrange meetings for our hedge fund clients are well screened for their interest in the strategy. The same is true for investors, we do not put pressure on investors to take a meeting, we only set up meetings with investors that show interest in meeting with our hedge fund clients.
Develop tailored follow-up plan for each prospect
Agecroft understands that each prospect is unique and has different due diligence requirements along with short and long term needs for their portfolios. Agecroft strives to get detailed feedback from each prospect and then develops a follow-up strategy to help investors through each step of their due diligence process.