Two 3PMs (James Palmer and Jonathan Lee) discuss the state of the industry with Simon Kerr.
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PART ONE (19.25)
Introduction to speakers and firms they represent.
2.38 Offices in different locations
4.26 What does a researcher do at a 3PM?
6.08 Testing a potential manager – chemistry, can they pitch and explain their edge? People, pedigree, performance, protection, process and place
8.34 Environment for capital raising? More competitive than ever. Perception of career risk amongst investors. Getting a “no” is easier.
14.02 US leading the way as investors and as providers of appropriate products.
15.58 Monthly liquidity required in Europe, share classes with better redemption terms
18.35 Demand for reporting status amongst UK investors in hedge funds
PART TWO (14.2)
UCITS – only few American funds going that route
1.22 Funds of funds – Some of big US funds of funds doing very well, smaller ones merging
5.04 Marketing and the increasing prevalence of investment consultants
8.34 How do you approach an investing institution with many layers of decision makers?
12.32 Due diligence changed, sales process changed?
PART THREE (16.0)
Where the demand for hedge fund product is concentrated.
3.20 Bringing American managers to Europe
5.55 Marketability of hedge fund UCITS – new marketing opportunity
8.03 What strategies are in favour? EM managers are still of interest; Increasing interest in market neutral.
12.00 Market environment/cycle good for which strategies? Sector funds have attractions.
PART FOUR (20.43)
Testing prospective managers. The edge, trust, establishing an understanding of outcomes between the external marketer and investment advisor.
3.59 Sourcing managers
6.05 Reporting by managers is response to the greatest current issue of transparency, and helps with capital retention.
10.20 Taking an investor relations role – maintaining dialogue with client
13.22 Dealing with a drawdown – investors buying into a drawdown? Unrealistic expectations from managers. Helping manager manage their time.
16.55 Demand for early stage managers. Critical level of AUM is now $150m. Record in 2008 important.
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