Sunday, 1 May 2016
Last updated 1 day ago
Mar 21 2007 | 6:06pm ET
One of the biggest challenges for new hedge fund managers and commodity trading advisors is finding investors. Sensing this need for a cap intro product, consulting firm Pinnacle Alternative Investments has put together an investor database made up of people, institutions and firms that specifically allocate money to emerging managers.
Starting this week, Pinnacle is making its emerging manager investor database available to hedge fund managers and CTAs who, in the past, were turned away from the firm because of Pinnacle’s representation constraints (Pinnacle generally represents three to four managers per year) but are deemed suitable given their historical trading performance, strategy and pedigree, according to Pinnacle managing director Jacques DeRouen.
“Over the last several months it became clear to us there was a distinct pattern emerging from inquiries regarding emerging managers’ abilities to get their stories out,” said Rouen. “Emerging managers are starving for some attention out there; they’re the lost stepchild, and that’s our niche.”
Rouen added that a typical diversified investor database can be priced anywhere from $5,000 to $10,000, whereas Pinnacle’s offering has two pricing levels. For $2,500, emerging managers are privy to some 3,600 firms including family offices, advisors/consultants, wealth managers, seed incubators, endowments, private banks, and funds of funds. Or, for $1,000, one can purchase the same list, minus the wealth managers and funds of funds.