Why You Need a Hedge Fund CRM

By Mary Beth Hamilton | Wednesday, September 9th, 2015

Transparency is the buzzword and, rightly so, investors expect it -- make that, demand it. As a result, nearly every hedge fund product is touting its ability to provide greater, faster, better transparency. I’ll try to avoid that in this post and instead focus on a budding buzz-phrase – investor relationship management or hedge fund CRM as we like to call it.

Yes, I know everyone’s heard of Salesforce.com, but we’re talking about a CRM application that is built specifically for hedge funds. As a tool that supports investor relations, a hedge fund CRM gives funds the ability to centralize all of their investor data, including contacts, documents and correspondence while also allowing investors to access fund information at any time, including transaction history, account balance statements and other investment data.

With today’s intense capital-raising landscape, a tool like this seems like a no-brainer, right? The reality is that many firms, particularly smaller ones, think a CRM app is out of their league or unnecessary. But the truth is that funds of all sizes need an efficient system for managing their contacts, prospects and clients.

So what should you look for in a hedge fund CRM?

Integration is one of the most important features of any CRM. These applications should not create more problems or require more time than employees have to devote. CRMs generally come fully integrated with key applications, i.e. Microsoft Outlook, which lends to more flexibility and less time and money spent on coordination between multiple applications.

CRMs also act as great sales and marketing tools for hedge funds. You’ll want to be sure it has:

Mass Emailing: Most applications come with mass emailing capabilities, which allow funds to quickly and easily communicate with all investors and potential investors, while also giving investors the immediate information they require.
Pipeline Management: Funds can also manage their sales pipeline and create performance estimates, among other things, all from one platform.
Investor Portal: Another increasingly popular feature within CRMs is an investor portal or Extranet – a secure site where investors can log in to download specific reports made available by the fund. By giving investors easy access to relevant documents and reports, funds can increase confidence and satisfy growing demands.

In today’s marketplace, when competition for investors is more difficult than ever, a CRM might be just the thing an investor is looking for in a fund. It can be seen as a true investment in a firm’s business, in its appearance and professionalism. When it all boils down, operating with a hedge fund CRM (think Ledgex CRM!) and eliminating disorganized spreadsheets and Word documents could be what sets your firm apart from the rest.

Tips, Tricks & More

Since you took the time to read this post you're likely actively seeking new ideas for making your hedge fund stand out from the crowd. So check out these resources: