Guest Contributors

Adam PattiIn this contributed article, Adam Patti, founder and CEO of exchange-traded fund and liquid-alternatives pioneer IndexIQ, takes a look at some of the current misconceptions around hedge funds, and the opportunities that may exist this year for outperformance over their long-only peers. The growth in liquid alternatives, however, raises potential challenges as investors navigate the increasing scope, range and complexity of such offerings - and the roles they can play in a portfolio.

For investors, the first step in researching a new fund or manager is to google them, and what they find will either encourage or derail further discussions. Surprisingly, most managers don’t think about digital reputation until something goes wrong - a disgruntled former employee starts posting disparaging or untrue information online, bad press from events years ago overshadows recent performance, etc. A better approach, explains Christina Bertinelli of Lumentus, is to actively curate your digital reputation so that the information available online – and what comes up on the first page of those search engine results – tells the right story.

Bruce FrumermanIn this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close look at where many hedge fund sales efforts falter, and what managers and hedge fund business owners can do in order to increase the effectiveness of their sales teams. As he explains, it starts with knowing who to pursue and when to pursue them, and includes arming sales personnel with the proper tools and information to explain a fund's approach, acumen and competitive advantages to people not just during the sales meeting, but also after it's over. Hint: It's not a bullet-point pitchbook.

The increasing reliance of third-party SaaS systems is a macro trend in the alternative investment industry. They enable managers to concentrate on building their core businesses without the distraction of complex systems administration, development and technology infrastructure. Yet for as much as hedge fund managers worry about risk in their portfolios, they may not be paying enough attention to the risks inherent in deploying such third-party systems, explains Robert Barsky of C&A Consulting in this guest article.

Cliff Stanton, CFAAs the financial world adjusts to the dawn of a post-ZIRP world (at least in the U.S.), there is no shortage of commentary about what the Fed’s first hike in nearly a decade means for various asset classes. In this contributed article, Cliff Stanton, CIO of liquid alternatives specialist 361 Capital, gives his take on why the rate hike might actually benefit some alternative investments more than others. 

Eric ZollerAmid a robust market environment for private equity, spinouts from existing firms are becoming increasingly common. In this contributed article, Eric Zoller, co-founder of private equity services specialist Sixpoint Partners, identifies key factors behind the proliferation of private equity firms, gives recommendations on how spinouts can best be accomplished, and explains the “magic number” every GP should know. 

Rob AllardDrawn by attractive risk-adjusted returns relative to most traded credit vehicles, institutional investor interest in the private debt space has surged over the past year, bringing with it a shift in the traditional attitude about alternative lenders.

In this contributed article, Rob Allard, founding partner of Firebreak Capital, explains why private debt has become the fastest-growing segment of non-bank finance.

Tony Heaver-WrenIn this contributed article, Tony Heaver-Wren and Caroline Barton of law firm Appleby take a close look at applying a subscription finance model to a Cayman Islands exempted limited company, how it differs from the orthodox model of an exempted limited partnership, and the considerations and risks that apply when a lender, rather than LPs. takes security over the capital contribution obligations of shareholders.

Mark HeddermanInvestors have been at the forefront of the evolution in hedge fund administration, demanding greater transparency, diligence, data and regulatory expertise. However, at the same time, funds continue to push for lower fees. Custom House Fund Services CEO Mark Hedderman explains the changes underway in this industry and how the discerning fund manager can partner with an administrator to make the investment process more secure – and thus more attractive – for investors.

Andre Boreas Following a difficult third quarter, fund managers across the industry are fielding difficult questions from investors. Andre Boreas, CEO of marketing and communications firm Quadsight Partners, has put together a quick primer on the do’s and dont’s when performance is not going quite as planned. Boreas's insights are well informed, as he spent over twenty years as an institutional investor, portfolio manager, marketer and product manager before founding Quadsight.