Hedge Fund Marketing and Due Diligence: A Webinar Recap
As more and more firms compete for investor attention and allocations across the financial services industry, differentiation becomes a critical consideration. And the promise of positive returns is not always enough to secure investments in today's competitive marketplace. Now more than ever, investment firms must push the boundaries in an effort to impress and satisfy new and existing investors and emerge as premier firms. Two ways in which firms can deliver on this are through marketing and technology.
Last week, Eze Castle collaborated with Meyler Capital, a hedge fund marketing firm, to deliver a webinar on Hedge Fund Marketing Tips to Impress Investors and Raise Capital. Scroll down to watch the full replay or continue reading our brief recap.
'You Can't Ask Someone For Money If You Don't Have a Relationship With Them'
While the financial sector is heavily driven by performance metrics, it is important to note that this is not a prime differentiator anymore, as all funds are ultimately striving for the best performance. As a result, performance ends up being a checkbox when compared with an investor's relationship with a firm. A firm that manages its client relationships well and provides value beyond its return on investment will truly stand out and impress investors. Furthermore, firms can create that value by becoming knowledge leaders, building interest from both potential and current investors and managing that interest through their relationships with those investors.
There are multiple ways a firm can work to capture an investor’s interest. For example, even something as simple as the language used on a firm’s website or the website itself can pique curiosity with small variances in language and tone. Oftentimes firms feel paralyzed by the conservatism that pervades the financial services industry and believe that investors aren’t interested in their website beyond the numbers. However, websites are any company’s 24/7 brand ambassador and should be treated as a key piece of their marketing campaign. Consequently, firms should consider taking their website and creating something that is indicative of the firm’s personality that will appeal to investors more so than generic performance numbers.
More Ways to Stand Out from the Crowd
Beyond leveraging your firm's website to develop relationships with investors, there are other critical marketing tools and techniques you should use to cultivate opportunities and capture investors' attention. Here are a few of note:
CRM & Email Marketing: This is a crucial way to track and analyze who's opening your emails and receiving your messages.
Video: A short, professional video captures charisma and power that only a human can provide (not a marketing deck).
Standard Presentations: Marketing decks are a right of passage in today's world; they are not a differentiating marketing tool.
The Evolving Nature of Investor Due Diligence
As technology and the investment industry as a whole evolves, so too does the nature of operational due diligence and investor DDQs. Three to five years ago, DDQs focused on technology were not common, while presently they are steadily increasing and becoming more detailed and specific. DDQs are also exhibiting certain trends such as a focus on expertise (how industry-vertical a service provider is), disaster recovery and particularly security, mainly as a result of the SEC’s cybersecurity exam process.
Investors are also interested in the infrastructure that supports a hedge fund or investment firm's operations. The overwhelming consensus (according to a recent investor event in New York) is that a private cloud is preferable, primarily for security concerns. The ideal cloud provider relieves all of a firm’s (and presumably, investors') worries by being industry-specific, secure through a robust disaster recovery and BCP program, and evolving with a firm’s technology needs over time.
To learn more about hedge fund marketing and investor due diligence, watch our full webinar recap below:
Additional Resources You Might Find Interesting:
The Transformation of IT and Hedge Fund Operations
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