Guest Contributors

Bruce FrumermanThere are two main goals a hedge fund should have for an initial in-person sales meeting with a prospects, says Bruce Frumerman of Frumerman & Nemeth. The first is to learn more about the prospect's portfolios, investment plans and needs. The second is to effectively tell the hedge fund’s story and the role it could play within the prospective investor’s total portfolio, provided there is a fit. In this contributed article, Frumerman explains the four topics crucial to a fund's first in-person meeting with a prospect, and the secret weapon to winning subsequent ones.

Nadim MalikDeal sourcing and origination is only going to get more competitive given current market and economic conditions, argues Nadim Malik, CEO of Sutton Place Strategies in this contributed article, yet they remain critical to the success of any private equity firm. An origination strategy is only as good as the data that informs it, Malik writes, especially when targeting lesser-active advisors and sponsors. Accordingly, refreshing elements such as contact information and performance-based metrics on a frequent basis will lead to more impactful and efficient use of resources.

Jeff HaasThe age-old financial concept that higher yields are the result of higher risk and lower liquidity has become much more complicated in the current environment, argues Jeff Haas of asset-backed lending specialist Old Hill Partners. Given the lack of yield and thin liquidity available in some traded credit markets, investors should embrace the illiquidity inherent in prudently structured private debt strategies as a way to capture yield and augment fixed-income allocations.  

Benoist GrossmanThe Brexit vote raised concerns about potentially significant economic and political consequences befalling both the U.K, the EU and, to some, global financial markets. But more than a month after the vote, are there signs such concerns were justified? Not necessarily, writes Benoist Grossmann, managing partner at Paris-based €6 billion PE/VC firm Idinvest Partners, in this contributed article. Instead, even though the U.K. may be leaving the European Union, its economy may well remain closely integrated with that of its neighbors.

Michael MarkovWhen the press reports extraordinarily strong relative or risk-adjusted returns at a particular fund, useful insights can be gathered by exploring how such a result could be hypothetically recreated using a combination of indexes, writes Michael Markov, chairman of Markov Processes International in this contributed article. 

Mark DeckerConventional wisdom holds that markets in the Asia-Pacific region are destined to follow China’s economic path, for better or (lately) for worse. However, as explained by Decker & Co. founder Mark Decker in this contributed article, the poor sentiment about the area is not consistent with what’s happening on the ground there. Sentiment will shift and assets will return, he predicts, benefitting those investors who are positioned correctly ahead of time.

Despite Sasha Jensenrecent market volatility, disappointing returns and fund outflows, demand for marketing/capital raising professionals in the alternatives industry remains strong. In this contributed article, Sasha Jensen of Context Jensen Partners, an executive search firm exclusively dedicated to sourcing strategic capital raisers across hedge funds, private equity and other alternatives, explains the hiring trends currently visible in the fund marketing space. 

Matt O'MalleyPeer-to-peer lending platform LendingClub Corp. has been in the news since the firm’s board accepted the resignation of CEO Renaud Laplanche for, among other missteps, investing in a fund that purchases LendingClub loans. In this contributed article, Matt O'Malley, president and COO of alternative fixed-income firm Looking Glass Investments, contends the episode sheds light on a set of industry-wide questions that need to be addressed, including the ability to use capital inflows to mask actual default rates, false promises of instant liquidity, and the lending platform internal hedge fund.

Amidst a steady stream of negative quotes and articles about the hedge fund industry, Agecroft Partners’ Don Steinbrugge used an address at the 69th CFA Institute Annual Conference in Montreal to address a few examples of the current sentiment - and their implications. 

Don SteinbruggeThe recent decision by the New York City Employment Retirement System to exit its $1.4 billion of hedge fund investments has raised eyebrows in the industry as a potential harbinger of things to come. In this contributed article, Don Steinbrugge, managing partner of hedge fund marketing firm Agecroft Partners, explains why the trustees of NYCES should reconsider their decision.