3 Investor Winning Hedge Fund Marketing Strategies
Written by Ledgex Systems, the following article originally appeared in the Canadian Hedgewatch under the title, "2015 Trends: Investor-centric Approaches for Hedge Fund Growth."
Winning Hedge Fund Strategies
In today's competitive market, winning investor assets is no easy feat. Hedge funds must be nimble and meet increasing investor and regulatory demands, while remaining cost efficient and advancing operations. To foster and sustain these relationships, it’s vital that managers and investors reach equilibrium in regards to their interests and expectations.
Achieving this balance is an ongoing challenge; however, it also offers firms opportunities for improvement. The following are suggested focus areas for hedge funds to differentiate themselves from the competition and attract and retain investors.
Bespoke Fund Productization
Managers that strive to enhance offerings consistently to attract principal growth must focus on investors’ needs during product ideation and development. Aside from exceptional client service, investors expect high performance, availability, transparency and seamless integration with client relationship management data. Hedge funds that invest in building bespoke solutions suitable for investor operations will meet expectancies better while increasing efficiencies and reducing the risk of underperformance.
To meet growing investor demands hedge funds must dig below the surface and provide visibility into both customer and investor relationship data. In other words, they need a bird’s eye view that can be magnified down to every layer, touch point and email.
This all-encompassing perspective, coupled with readily available, accurate information, will help managers identify areas for improvement and eliminate any guesstimates regarding past client activity. Information is king, and maximizing its value will empower a firm to become consistent in their efforts. Furthermore, funds will be able to nurture investor relations more effectively; rather, than acting on a whim when addressing investor questions and strategizing future business objectives.
Lack of Ease in Interpretation
Investors’ needs have evolved beyond historical data and records of interactions for performance evaluation and future planning. Although these reporting aspects are still valuable, suffice to say that paper trails of spreadsheets and multiple back-office systems are a way of the past. Some firms utilize multiple platforms and resources to manage customer relations, mailings, portfolios and the like, which can lead to increased headcount, cost and time.
Efficiently managing all of these areas requires one centralized platform that provides insight into sales and marketing initiatives, capital activity and communication tracking. Offering a one-stop-shop product not only simplifies customer and investor relationship management, but also enhances the fund’s services.
About Ledgex CRM:
Ledgex CRM is a highly configurable, centralized platform that is tailored specifically for hedge funds, endowments and foundations, fund of funds, pensions and family office organizations. Ledgex CRM is ideal for managing and tracking investor communications, sales opportunities, client relationships and capital movements. It is a web-based solution that streamlines investor relationship management and capital activity, enabling managers to optimize their time and focus on fostering relations and growing business.
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