Although institutional investors are becoming increasingly relevant to hedge fund and CTA managers, many firms have little experience courting the institutional investing community and few, if any, have resources dedicated to this segment. Institutional investors offer “stickier” allocations — but require greater transparency.
In addition, the market is becoming increasingly competitive. Not many years ago, there were fewer than 1,000 hedge funds. Now, there are tens of thousands. Even traditional managers are crossing over and starting to offer more alternative strategies. In the noise that a competitive market creates, distribution and marketing are becoming increasingly important.
Meeting the Challenge
eVestment has invested significantly in recent years to support institutional investors looking to increase allocations to alternative strategies. With acquisitions of the HFN database (including over 9,000 active alternative vehicles) and analytics tools through the acquisitions of PerTrac and Fundspire, eVestment is in a unique position to work with hedge funds and CTAs seeking institutional allocations.
eVestment offers efficient marketing and exposure through inclusion in the eVestment global database. Used by 78% of the top 50 consultants as ranked by Pensions & Investments in 2013, the eVestment global database has become an industry standard for long-only and alternative strategies.
In addition, dynamic and accessible analytical tools support the need for more effective presentations, transparency and ongoing reporting. Hedge funds can compare their funds to common benchmarks — or provide details on long/short exposure and long/short attribution. And, with a single click, eVestment can compile and distribute reports in custom templates to key targets. CTAs can also benefit by searching for futures, commodities, options or strategies such as managed futures — using this information to help educate and advise others on opportunities.
For hedge fund managers, the most efficient way to ensure that your funds are seen is to have them in the eVestment database with robust and timely information. There is no cost to you to update the database. eVestment has worked closely with the consultant community to design a questionnaire that meets the needs of consultants — both with regard to the type of information requested and the architectural structure of the collection process. This has reduced the effort and increased clarity when providing information on master-feeder and share class relationships.
Privacy concerns for hedge funds are addressed by offering two distribution options through the database. The first option makes your data available to any institutional investor or consultant using our tools. The second option lets hedge funds target which consultants have permission to view their data through the private portal. We are seeing many of the larger firms who typically don’t provide any information to databases update the eVestment database readily through the private portal.
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With three options to choose from, Analytics gives hedge fund and CTA managers the ability to better research and assess competition. You can answer the questions:
- How do I compare to my peers?
- How do I compare to benchmarks?
- What strategies are others following?
- How does my product line-up look?
- Are there any new or emerging strategies I should consider?
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Omni helps resource-constrained asset managers to handle updates to multiple databases more efficiently so that you can:
- Ensure that you are well-represented in the databases most important for your firm and product
- Focus on populating characteristics that matter the most to your potential investors
- Update information – and meet the deadlines
- Optimize your resource investments with a full-service, partial-service or technology-based solution
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