| June 23, 2016
| September 4, 2015
Disclaimer: I am not a lawyer. These are just general observations from my non-lawyerly experience. For actual legal advice you should consult your counsel; ironically the same counsel that I will now suggest could be sucking blood out of your organization like a tsetse fly. But either way, don’t listen to me and listen to your lawyer (or a lawyer) instead.
| September 3, 2015
Hedge fund marketing is a tricky sport, and there are some pitfalls to be aware of when meeting with investors. Here are 5 of the worst types of meetings that hedge fund managers experience and how to interpret or avoid them.
| September 1, 2015
A key question that comes up in most due-diligence meetings is the oft dreaded “what is your edge?” The answer is often the difference between an allocation and going home with nothing. From my meetings with many managers I’ve found that most answers boil down to several cliches. Be sure to avoid these common answers that will turn off an experienced hedge fund investor:
| June 24, 2015
From an investor’s perspective some of the best responses we’ve heard include:
“We’re the largest private recipient of IPO syndicate in our region.” This was from a manager who has great relationships with major banks in his region and pretty much just flips IPOs for fairly absurd returns. This is entirely a relationship edge.
| June 22, 2015
The cornerstone of hedge fund investing is due-diligence. Over the years investors have missed blatant red flags that are obvious to experienced hedge fund investors. Apply these 8 tips to your due-diligence process to help sort through the weeds and avoid potentially fatal losses:
#9. Neglecting PR Opportunities — Despite the JOBs Act and the loosening of ‘mass solicitation’ rules, most hedge funds are still so terrified of the SEC that they will do anything in their power to ignore perfectly legal PR opps. Ray Dalio, founder of Bridgewater Associates, was recently featured on the cover of Absolute-Return Magazine, giving an exclusive interview. If done correctly (ie: legally), TV appearances, magazine articles, and speeches can be a great boost to credibility.