Linkedin Hedge Fund Group (HFG) Launch

Hedge Fund Group (HFG)

Hedge Fund Group (HFG) Launch

hedge fund group on linked.comThe Hedge Fund Group (HFG) has been launched in conjunction with Linkedin.com. This group was formed in an effort to further connect hedge fund professionals to share business leads, provide consulting services, network, and share online resources related to the hedge fund industry.

Initially attracting mainly technology/IT professionals the site now boasts over 100,000 CEOs as members along with tens of thousands of investment and hedge fund professionals. Linkedin.com has over 5 million members and is growing quicker than Myspace and FaceBook. Below are some stats on the growth of Linkedin.com compared to other social networking websites that you might be familiar with:

NetworkGrowth rate
LinkedIn189%
Club Penguin157%
Facebook125%
Windows Live Spaces32%
MySpace19%

Source: Nielsen Online

I have created a new group for hedge fund professionals who are on Linkedin.com. To join this network of hedge fund professionals and casual industry followers please click on the link below:

Linkedin.com Hedge Funds Group (HFG) Invitation Link

or

http://www.linkedin.com/e/gis/44059/5FC1F8699305

- Richard

Permanent Link: Linkedin Hedge Funds Group Launched

Articles Related to Hedge Fund Group (HFG)
Related Terms: Linkedin Hedge Funds Group, Linkedin Hedge Fund Group, Hedge Fund Networking
Picture Source: Linkedin.com, HFG, Hedge Fund Group

Link to This Resource: Linkedin Hedge Fund Group (HFG) Launch

http://richard-wilson.blogspot.com/2007/11/linkedin-hedge-funds-group-launch.html

Large Accredited Investors

Large Accredited Investors

Large Accredited Investors Definition


Large Accredited InvestorsThere is a proposed classification of wealth individuals which could affect hedge fund legislation called Large Accredited Investors. Large accredited investors are people with at least $2.5 million in investments (excluding homes) or $400,000 in annual income ($600,000 when combined with a spouse). This is a new category of qualified buyers of financial products that is meant to protect smaller investors which the SEC see as less able to absorb some of the risks of certain investments.

Note: This is a proposed definition by the SEC, it has not been put into place yet.

Read dozens of additional articles like this within the guide to Hedge Fund Terms.

- Richard

Permanent Link: Large Accredited Investors

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Tags: large accredited investors, large accredited investor, accredited investor, accredited investors, accredited investors definition

Link to This Resource: Large Accredited Investors

http://richard-wilson.blogspot.com/2007/11/large-accredited-investors-definition.html

Hedge Fund Investments

Hedge Fund Investments

Hedge Fund Investments Video

Here is a short video I found on hedge fund investments.

If you can't view this hedge fund investments video please follow this link: http://www.youtube.com/watch?v=n6m4_UyfLDs

Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

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Permanent Link: Hedge Fund Investments

Related Terms: Hedge Fund Investment, Hedge Fund Investments, Investments in Hedge Funds, HedgeFund Investment, Investment Hedge Funds, Hedge Funds Investments, Hedge Fund Investments Guide

Link to This Resource: Hedge Fund Investments

http://richard-wilson.blogspot.com/2007/11/hedge-fund-investment-strategies.html

Using Hedge Funds in Financial Planning

Using Hedge Funds in Financial Planning

Financial Planning with Hedge Funds

hedge funds and financial planningIf you are a financial advisor and would like to begin using hedge funds within your financial planning practice the steps below might help you navigate this process. Note: While this article was written for financial advisors, others might also find some useful tips and resources here.

  1. Speak with your broker-dealer as applicable about available hedge funds through their organization and what the process would be to invest in a hedge fund through their compliance/reporting requirements. Make sure and get a clear understanding of what licenses the broker-dealer requires you to have as well.
  2. Become a continual learner of hedge funds, read 50-100 posts on my hedge fund blog (http://richard-wilson.blogspot.com/), subscribe to newsletters by FinTag, Fierce Finance, and the Albourne Village. This organic education (vs. being spoon fed by consultants) will pay dividends when it comes to evaluating fund managers and negotiating fees.
  3. Evaluate your current book of business. Who is an accredited investor? Who will soon become one? What amount of assets or % of your total book is of individuals who would be considered accredited investors?
  4. Conduct some research on hedge fund consultants and hedge fund brokers and explore the various options available to you. You might not need to work with a consultant but it could help to be connected to a few consulting firms that see hundreds of hedge funds a year and would happy to introduce you to who they have selected as “best of breed” in the industry.
  5. Try to customize your portfolio allocation software or reports so that you can show your clients 3 typical asset allocation strategies. One might suggest a 5% allocation to hedge funds with others allocating say 11% and then 20-25% as more aggressive options. These are not hard and fast numbers but they might help start a conversation around their use of hedge fund sin the near term.
  6. Have 3 resources on hedge funds available to provide to your client in case they ask more about what they are. One way to provide this information would be to print out 2-3 posts from within this blog that would be serve your clientele. For example it might be helpful to show them posts I have written on the Differences between “Hedge Funds & Mutual Funds,” “What is a Hedge Fund,” and “Why Invest in Hedge Funds?.”
  7. Establish your own internal due diligence process that can help you weed out managers that are not likely to provide the type of performance or capital preservation you are seeking.
None of the above should be taken as financial advice or recommendations and a qualified compliance professional or lawyer should review your procedures before making investments in hedge funds or advising others on placing your money with hedge funds. If you need to speak with a lawyer please let me know I have a few friends who have worked with dozens if not hundreds of hedge funds in the past. My email address is Richard@RichardCWilson.com.

- Richard

Permanent Link:Using Hedge Funds in Financial Planning
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Tags: financial advisor, hedge funds, hedge fund advisor, hedge fund wealth management, family office hedge fund, family office wealth management, wealth advisor, wealth avisory, financial planner for hedge funds, hedge fund high net worth advisor, wealth management hedgefund

Link to This Resource: Using Hedge Funds in Financial Planning

http://richard-wilson.blogspot.com/2007/11/using-hedge-funds-in-financial-planning.html

Hedge Funds The Root of All Financial Evil?

Hedge Funds The Root of All Financial Evil?


Hedge Funds The Root of All Financial Evil?This is what could sometimes be construed by reading through various news publications reporting the fraudulent acts and losses that are well documented among the almost 10,000 hedge funds in existence today. Recently though hedge fund professionals and those outside the industry have been trying to correct this image.

The head of the Financial Services Authority (FSA) said that, "hedge funds were not the catalysts or drivers of this summer’s events.” Additionally the deputy governor of the Bank of England stated that “hedge funds have not been blown away by the first signs of real market stress, as some commentators thought they would be.”

This is important to note because it is the equivalent of Alan Greenspan and speaking up to clear the air on stop the continuous finger pointing at hedge funds whenever there is volatility in the marketplace. Many hedge funds provide liquidity when there otherwise would be none, they create a more "perfect" market to trade in.

- Richard

Permanent Link: Hedge Funds The Root of All Evil

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  7. Family Offices Group .com
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Related Terms: hedge fund performance, hedge fund volatility, hedge fund london, alan greenspan, hedge funds liquidity, hedge fund market, hedge fund publications

Link to This Resource: Hedge Funds The Root of All Financial Evil?

http://richard-wilson.blogspot.com/2007/11/hedge-funds-root-of-all-financial-evil.html

Multi Strategy Hedge Fund

Multi Strategy Hedge Funds

Multi Strategy Hedge Funds


Multi Strategy Hedge FundsMulti strategy hedge funds use several strategies within the same pool of assets. They might seek returns from running money focused on shorting equities, investing in global real estate projects, and seeking momentum focused event driven strategies. The diversification benefits help to smooth returns, reduce volatility and decrease asset-class and single-strategy risks. These funds may allocate funds in to a certain strategy in response to market trends allowing them to more easily capitalize on favorable market conditions. Due to the unpredictable nature of this type of hedge fund, the volatility is variable. A downside to this form of investing is that they will rarely be the highest performing hedge fund over a short time period. This is because the diversification dilutes the returns of any highly profitable strategy. The long term consistency, however, generally outweighs this risk.

I haven't seen this type of fund very often as only the largest funds will have the resources to effectively employ the strategy. Many people wanting hedge fund exposure to this type of strategy diversification will buy a
fund of hedge fund product.

Here is a Comparison Between Hedge Fund of Funds and Multi-Strategy Hedge Funds.

Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

Permanent Link: Multi Strategy Hedge Funds

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Tags: multi-strategy, multi strategy, multi strategy hedge funds, multi strategy hedge fund, multi-strategy hedge fund, multi strategy fund, multi strategy explanation, multi strategy definition

Link to This Resource: Multi Strategy Hedge Fund

http://richard-wilson.blogspot.com/2007/11/multi-strategy-hedge-fund.html

Event Driven Hedge Funds

Event Driven Hedge Fund Strategy

Event Driven Hedge Fund Strategies

Event Driven Hedge Fund StrategiesEvent-driven hedge fund managers invest their assets on a opportunistic basis where they see best fit. Sometimes they will be restricted to a set of certain events and their fund mandate allows them to use a wide range of assets or investment strategies to take advantage of those environments. Events can include some things that global macro funds might respond to but they can also include IPOs, mergers, write down announcements, or backdating scandal announcements. They try to ride the short term momentum either up or down created by events that are priced into the marketplace.

Want something more meaty? Here is a Roadmap to hedge funds
Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

Articles Related to Event Driven Hedge Funds
Permanent Link: Event Driven Hedge Funds
Tags: Event Driven Fund, Event Driven Hedge Fund, Event Driven Hedge Fund Manager, Event Driven Hedge Fund Managers, Event-Driven Hedge Fund, Event Driven hedge fund strategy

Link to This Resource: Event Driven Hedge Funds

http://richard-wilson.blogspot.com/2007/11/event-driven-hedge-funds.html

Family Office Wealth Management

Family Office Wealth Management

Multi-Family Office Wealth Management


Family Office Wealth ManagementI just found a great article on multi-family office wealth management that i wanted to share. It is not new but it is a good discussion of multifamily office wealth management services, which often includes the use of alternative investments such as fund of hedge funds or traditional hedge funds.

- Richard

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Permanent Link: Family Office Wealth Management
Tags: family office wealth management, multifamily office family management, family office wealth managers

Picture Source: Finnav

Link to This Resource: Family Office Wealth Management

http://richard-wilson.blogspot.com/2007/11/family-office-wealth-management_21.html

Multi-Family Offices & Hedge Funds

Multi-Family Office Hedge Fund

Multi-Family Offices & Hedge Funds


family office hedge fund, multifamily office hedge fundsMany multi-family offices use hedge funds because their clients consist of high net worth or ultra high net worth investors. There are over 800 family offices in the US and over 3,000 family offices globally. With such a high number of offices the types of hedge funds that family offices use varies from place to place. Some best practices on the types of funds family offices typically worth with though include using hedge fund managers that have:
  • 3+ years of a track record
  • Deeply experienced portfolio management team of at least 4 professionals
  • A competitively defendable and repeatable investment process
  • Transparent operations
  • Long-term relationships with the family office
  • Top quartile or decile performance
  • Returns that are not highly correlated with stock market movements
  • Assets of over $30M with preference of at least $100M-$300M
When dealing with hedge funds and hedge fund of funds multi-family offices usually avoid hedge funds that have:
  • Track records of less than 2 years
  • Small management teams
  • Give off the impression of being a fly by night operation
  • Capitalization Problems
  • Poor marketing materials that are unprofessional
  • Hard selling overbearing sales people that don't understand how family offices are ran
- Richard

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  8. Family Office Hedge Fund
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Permanent Link: Family Office Hedge Fund
Related Terms: family office hedge fund, family office hedge funds, multi-family office hedge fund, multifamily office hedge funds, family offices hedge funds, family office hedgefund, hedge funds for family offices
Picture Source: Semaphora

Link to This Resource: Multi-Family Offices & Hedge Funds

http://richard-wilson.blogspot.com/2007/11/family-office-hedge-fund.html

Global Macro

Global Macro Hedge Fund Strategy

Global Macro Hedge Fund Strategy

Global Macro FundGlobal Macro is a relatively volatile hedge fund strategy that attempts to profit from shifts in the market due to economic, political, or government related events. Many times these hedge funds use leverage and produce returns that are not highly correlated with the public equity markets. Hedge fund managers use indexes, equities, etfs, bonds, and other asset types while using this strategy.

Managers of global macro hedge funds try to anticipate changes in global macroeconomic trends and make bets to profit from them. They are able to allocate capital across asset classes, sectors and regions. It is perhaps the widest mandate of all hedge fund strategies as managers can take a position in any market and instrument. It is therefore no surprise that managers of global macro hedge funds have very different approaches and trading styles. Some managers will design trades based on their subjective opinion of market conditions (called discretionary approach), while others will use quantitative or pre-defined rules to do so (called systematic approach). And others will use a combination of both methods. However, all global macro managers are linked by the international scope of their strategies, the use of leverage and a primary focus on structural macroeconomic imbalances and trends.

Global macro trading strategies primarily fall under two categories: directional and relative value. In a directional trade, a manager will bet on discrete price movements, such as long US dollar, short gold or long Indian government bonds. On the other hand, relative value trades are structured by pairing a long and short position in similar assets to take advantage of a relative mis-pricing. For example, a manager can go long Indonesian government bonds and short Philippine government bonds

One of the most famous global macro trades is a relative value trade designed by George Soros, who bet that the UK would be forced out of the European Exchange Rate Mechanism (ERM) in 1992. So, he borrowed the sterling pound and converted it into a mixture of Deutschmarks and French francs. On September 16th 1992, known as Black Wednesday, Soros’ bet paid off when the pound fell below its minimum level in the ERM. It is this trade that earned Soros the title of ‘the man who broke the Bank of England.’

Soros and several other star global macro managers such as Julian Robertson, Lewis Bacon and Bruce Kover have generated outsized returns. In fact, on average, the performance of global macro funds has been relatively strong, as they have produced high absolute returns, outperforming traditional asset classes.

Books Related to Global Macro Hedge Funds

  • Drobny, Steven. Inside the House of Money: Top Hedge Fund Traders on Profiting in the Global Markets. New Jersey: John Wiley & Sons, Ltd., 2006. Sample first chapter to be found here.Drobny really does take his readers inside global macro hedge funds, through 13 in-depth interviews with global macro hedge fund managers that provide rare insight into a variety of trading strategies as well as a behind-the-scenes perspective. The book also includes a chapter on the history of global macro hedge funds that gives a good sense of how the driving forces and consequent trades put on by global macro managers have changed over the years.
  • Lhabitant, Francoise-Serge. Handbook of Hedge Funds. West Sussex: John Wiley & Sons, Ltd., 2006.This is an excellent guide to the industry, with concise and informative descriptions on all of the major hedge fund strategies and primary methods to measure their risk and performance. Lhabitant also includes an overview of the legal environment of hedge funds and their organizational structure, while ending with a short guide to investing in them.


Global Macro White Papers & Articles

  • Ahl, Peter. “Global Macro Funds – what lies ahead.” AIMA Newsletter, April 2001.This paper provides a short description on the strategy and describes the three primary approaches used by global macro managers to find opportunities. However, since it was written in 2001, its predictions and suggestions are slightly outdated.
  • Coen, Madilean and Sherwin, Richard. “Global Macro Hedge Funds.” The Hedge Fund Journal, May 2008. This article discusses the historical performance of the global macro strategy, with emphasis on its relatively good performance in 2008, even given the stress in the financial markets. It also points out how there has been a wider dispersion of returns among managers who use a discretionary approach than among those who use a systematic approach.
  • Davis, Nigel. Funds of Hedge Funds Look to Global Macro for Gains. July 22nd, 2008, Reuters.In this Reuters article, Nigel Davis examines why global macro hedge funds are popular during times of crisis.
  • Global Derivatives. Overview of Hedge Fund Strategies, November 2003.Quick and dirty description of all major hedge fund strategies.
  • MacDonald, Alistair and Patrick, Margot. Macro Gangs Hang Tough. March 12th, 2007, Wall Street JournalThis WSJ article looks at what the possibilities were for global macro hedge funds in the beginning of 2007. In the process, it gives a good background on global macro funds. We are providing the link through RiskVentures, who originally drew our attention to the article.
  • Säfvenblad, Patrik. February 2004, Global Macro Trading This power point presentation outlines the structure of the alternative asset space and the comparative position and performance of global macro hedge funds. It also details some popular trading strategies of these hedge funds while highlighting the risks and issues that confront them.

Blogs Related to Global Macro Hedge Funds

  • Boom Bust Blog Written by Reggie Middleton, who apparently trades from home and works primarily off his own research, this blog contains short, interesting and sometimes cynical posts that would interest global macro traders.
  • The Global Guru This blog provides a weekly overview of the major issues in the financial markets, in the context of global macro hedge funds.
  • Investment Capitalist Investment capitalist blogs on issues that are likely to interest global macro investors. The blog is well organized and the posts often contain sharp insights buried beneath a lot of words. It also has a list of reading materials that cover technical and fundamental analysis as well as investment philosophies.

Information Sources

  • Eurasia Group Eurasia Group is a political risk advisory and consulting firm. They generate political research specific to various regions as well as general macro trends. Access is for subscribers only.
  • RGE Monitor Founded by the prominent economist, Nouriel Roubini, the RGE Monitor contains a wealth of information and analysis on global economic, political and financial events. Staff economists write daily commentary on select global macro issues which are available without subscription. However, access to region and sector specific information is by subscription only.

Tracking

  • Barclay’s Global Macro Index Barclay’s calculates the average performance of 130+ global macro funds.Credit Suisse Tremont Hedge Fund Index CS/Tremont tracks provides registered users with historical data on the performance of variety of hedge fund strategies.

Want some more meat on global macro hedge fund strategies? Here's a white paper on Global Macro Hedge Funds

Read more articles like this within my Hedge Fund Strategy Guide list of articles.

Last updated by Sharini Kulasinghe

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Permanent Link: Global Macro
Related Terms: Global Macro, Global Macro Hedge Fund, Macro Strategy, Global Macro Hedge Funds, global macro manager, Global Macro Fund, Global Macro Hedge Fund Managers, Global Macro Hedge Fund Manager

Link to This Resource: Global Macro

http://richard-wilson.blogspot.com/2007/11/global-macro.html

Distressed Securities Hedge Fund Strategy Explanation

Distressed Securities Hedge Fund

Distressed Securities Hedge Fund Strategy Explanation

Distressed Securities Hedge FundHedge funds that invest in distressed securities buy debt or equity positions into firms filing for reorganization or bankruptancy. Many of these types of funds due extensive fundamental research analyzing the book value, balance sheet, strategic partners, suppliers, and creditors of a company before investing their money. These types of hedge funds usually have relatively low volatility but without exception require someone with deep bench strength and fundamental research experience.

- Richard

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Permanent Link: Distressed Securities
Tags: distressed securities, hedge fund strategy, low volatility hedge fund

Link to This Resource: Distressed Securities Hedge Fund Strategy Explanation

http://richard-wilson.blogspot.com/2007/11/distressed-securities-hedge-fund.html

Alternative Investments Outperform

Alternative Investments

Alternative Investments Outperform

Alternative Investments ‘‘Over the past decade, the four primary alternative asset classes – real estate, infrastructure, hedge funds and private equity – delivered higher returns than the traditional offerings of stocks and bonds,” said chief economist and strategist for RREEF, Asieh Mansour.

Mansour points to the swelling size of the alternative asset industry as direct result of steady returns during uncertain times in the public markets. His report states that more investments in areas that are not highly correlated with stocks and bonds will be made, especially by pensions and endowments. This bodes well for hedge fund managers.

I think that these types of reports are great to see in mainstream media because so often we hear of hedge funds blowing up or someone committing fraud while institutions are pouring money into these alternative investments. Why? Out sized and un-correlated returns. Many are trying to catch up on pension obligations or add in some extra alpha on top of their US equity money manager allocations which might just be trying to beat a benchmark by a few points.

Read more articles like this within the Hedge Fund Performance Category of this hedge fund blog.

- Richard

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Permanent Link:Alternative Assets Outperform
Related Terms: alpha, hedge fund growth, alternative asset growth, uncorrelated investment returns, hedge fund report, alternative asset class, hedge fund alternative investments

Source: Financial Standard

Link to This Resource: Alternative Investments Outperform

http://richard-wilson.blogspot.com/2007/11/alternative-investments-outperform.html

Hedge Fund Industry Basics

Hedge Fund Industry

Hedge Fund Industry Basics

Hedge Fund Industry Here are a few trends, facts, notes about hedge funds that I have picked up and some people might not know. Eventually I will combine several posts similar to this to create a 1 page hedge fund industry snapshot for professionals in the field, specifically for family offices and financial advisors who need to get up to speed on the latest developments.

  • Not all hedge funds are risky relative to mutual fund, SMA, or ETF product alternatives
  • There are around 10,000 hedge funds in existence with 30 new ones created each quarter
  • Around 80% of all hedge funds have under $100M in total assets under management (AUM)
  • According to Magnum Funds hedge fund returns have outperformed standard equity and bond indexes with less volatility and less risk of loss than equities
  • Most hedge fund assets are being gained by the industry giants with over $2B/AUM
  • Institutional investors make up a huge portion of the hedge fund investor base, their risk controls sometimes only allow them to invest in larger funds. They also have a great need for highly researched uncorrelated returns to safegaurd their assets. In fact the more research-heavy a large institution is the higher the chance will be that they invest in alternative assets such as hedge funds. This is ironic given the risky profiles they are given by the mass media
  • Most hedge fund managers are highly professional and ethical
  • Most hedge fund managers or portfolio management teams have backgrounds or unique information/experience advantages in the market.
  • Many of the most talented traders and money managers start hedge funds because the payouts are higher for great performance. Yes, the investor pays more but they are also getting premium products. Would you try to find the cheapest surgean or least expensive childcare provider possible? Probably not. When results matter so does expertise and performance.
  • Hedge Fund typically charge fees of 2% on base assets and 20% of any performance profits they bring in. Some hedge funds are only charging 1 or 1.25% base fees while they are still considered emerging managers.
  • Minimum investments in hedge funds range from $100k to $50M depending on the clout and size of the fund at hand.
  • In 2005 Absolute Return Magazine found that 196 hedge funds had over $1B in total assets under management (AUM)

- Richard

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Permanent Link:Hedge Fund Industry Basics

Related Terms: hedge fund industry, hedge fund basics, hedge fund facts, hedge fund trends, hedge fund events, hedge fund fees, hedge fund assets under management, hedge fund emerging managers, small hedge funds, new hedge fund, new hedge funds

Link to This Resource: Hedge Fund Industry Basics

http://richard-wilson.blogspot.com/2007/11/hedge-fund-industry-basics.html

Book Review: Rainmaker

Book Review: Rainmaker



I wrote this book, Rainmaker during my MBA program four years ago. It is a short text focussed on best practices of sales, business development and negotiation that I picked up while working, reading the Harvard Business Review, and speaking with experts in sales and business development. It contains over 100 lessons, models and best practices that can help you grow your hedge fund or business.

As of this morning I have made this book available for free to those people reading my blog. I did this for two reasons. One, I have learned a lot about sales and business development since writing this book. Eventually I will write a book on hedge fund sales but I haven't yet so I would like you to read this more general book on sales and negotiation with the promise that my more focussed text on hedge funds will be many times more valauble. Second, I have found through writing in this blog that the relationships gained from giving away knowledge is far more valuable than a small margin of profit from individual book sales or advertising profits.

To download this book for free please visit

Enjoy this book review? Read a few more by visiting our Investment Book Reviews Directory.
Related Terms: hedge fund sales, hedge fund marketing, hedge fund third party marketing, business development, negotiation, fees, growth, assets under management, aum

Link to This Resource: Book Review: Rainmaker

http://richard-wilson.blogspot.com/2007/11/book-review-rainmaker.html

Online Hedge Fund Community


Online Hedge Fund CommunityI'm experimenting with an online community just for hedge fund professionals. It is a mix of what you find on Linkedin.com, the Albourne Village, and Facebook. Sub groups within the hedge fund community would talk about hedge fund marketing, legal issues, hedge fund due diligence and general hedge fund research, and job openings. The goal is to create a collaborative environment where professionals can share business leads, work on projects that require multi-disciplinary teams, and keep connected in a more meaningful way than a an email or two a year.

I've setup this online hedge fund social group through ning so it could handle 40-50,000 members eventually if people like the idea. Let me know what you think.


- Richard

Permanent Link: Online Hedge Fund Community
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Related Terms: hedge fund, hedge funds, online hedge funds, hedge fund networking, hedge fund careers, hedge fund employment, hedge fund jobs, hedge fund resumes, hedge fund industry, hedge fund information, hedge fund analyst, hedge fund associate, hedge fund manager

Link to This Resource: Online Hedge Fund Community

http://richard-wilson.blogspot.com/2007/11/online-hedge-fund-community.html

Hedge Fund Search Engine

Hedge Fund Search Engine



I've put together a search engine just for hedge funds. It works and acts just like Google but I control the scope of the content so you don't get college essays, websites pitching products, or information about things like trimming hedges in your backyard.

If anyone wants to help me develop it further I could use some more suggested websites or blogs with lots of rich timely content.


Thanks in advance.

- Richard

Additional Resources:

Permanent Link: Hedge Fund Search Engine
Related Terms: Search Engine for Hedge Funds, Hedge Fund Search Engine, Hedge Funds Search Engine, Hedge Fund of Fund Search Engine

Link to This Resource: Hedge Fund Search Engine

http://richard-wilson.blogspot.com/2007/11/hedge-fund-search-engine.html

Man Investments Group | Hedge Fund Tracker Notes | 1 Page Guide

Man Investments Profile

Man Investment Group | Hedge Fund Notes

The following piece on Man Investments is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund research please see our Hedge Fund Tracker Tool.

Resource #1: Man Group warned profits would fall for its half year that ends today as the largest listed hedge fund nanagera saw lower performance at its biggest fund. Shares in Man hit their lowest in three years falling 68¼p, more than 18 per cent, to 305½p, as funds under management tumbled $4.3bn in six months to $70.3bn (£38.1bn). Man said earnings per share excluding exceptional items were likely to be 5 per cent down on the 34.1 cents achieved in the same period last year, hit by the weak performance of AHL, its biggest hedge fund. Net performance fees would fall about 40 per cent, Man said, from $283m a year before.

However, Peter Clarke, chief executive, said sales had remained strong and the rate of client withdrawals was not up significantly. "To have sold as much product in the second quarter as the first quarter in the teeth of these financial markets is testament to the strength of our distribution," he said. AHL, which tries to catch trends in commodity and other futures prices, has given back almost all of its gains for the year after commodity prices crashed over the summer then unexpectedly spiked again. For the year to September 24, AHL was up 0.9 per cent.

Man's main funds of hedge funds have all fallen, with Chicago-based Glenwood down 5.8 per cent, Man Global Strategies off 10.8 per cent and RMF down 2.5 per cent, amid a general rout in the hedge fund sector. Analysts cut profit forecasts further after downgrades last week. Numis Securities, which lopped 11 per cent off its prediction of next year's earnings, said it expected Man to benefit long term as the hedge fund sector became less competitive.

Mr Clarke said hedge funds would face more regulation as market watchdogs increased oversight of the financial world after bank collapses. But he said Man - already highly regulated - was likely to cope better than most with that, as well as having enough cash to be able to buy stakes in other funds. Last night Man spent about £9.4m buying back 3m of its shares at 312.2p. Source

Resource #2:
Man Investments has announced the development of an online hedge fund trading platform called MI Trade. This allows advisers to manage hedge fund investments as if they were bonds or stocks with the ability to rebalance portfolios at a days notice instead of waiting for weekly or monthly or quarterly redemption dates. Only Man Group products are being offered on this platform and it is being offered for free.

The CEO of Man Investments John Morrison called it "a major leap forward for hedge funds that gives Man Investments a strong competitive advantage. Investors can now, at no extra cost, actively and easily trade hedge funds as part of an overall portfolio of stocks, property and bonds."

Sometimes companies release PR that is mostly fluff, this is not one of those times. This is a major step forward towards more transparency and flexibility and the ability to trade hedge funds on a daily basis will be valued highly by the family office and wealth management community.

There are other hedge funds scrambling to put something together to compete against this. What starts as proprietary in the investment world eventually becomes open source, it is only a matter of time before there is a platform that hosts unaffiliated hedge fund products and allows them to be traded at any time in the day.

- Richard

Permanent Link: Man Group Announces First Ever Hedge Fund Trading Platform

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Related Terms: hedge fund platform, hedge fund trading platform, hedge fund day trading, hedge fund redemption, hedge fund holding period, hedge fund trading program Man Group, Peter Clarke, AHL, Glenwood, Man Global Strategies, RMF, Numis Securities

Source: HedgeWeek

Link to This Resource: Man Investments Group | Hedge Fund Tracker Notes | 1 Page Guide

http://richard-wilson.blogspot.com/2007/11/man-investments-announces-first-ever.html

International Hedge Fund Acquisition Trend

International Hedge Funds

International Hedge Fund Acquisition & Distribution Trend

International Hedge Fund Acquisition TrendSuccessful hedge funds have a growing appetite for spending their cash on hedge fund acquisitions and gaining additional international product exposure and distribution channels. RAB announced today that it is taking a 20% stake in Tokyo-based Prestige Capital Management.

In this particular place I believe 80% of the motivation to get the deal done was to increase Prestige's incentives to help distribute RAB products. They have helped RAB with marketing and sales in the past and increasing this can help RAB move from a $7B firm to more than $20B within a year if they continue to see strong growth across the 15 strategies that the group currently manages.

- Richard

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Permanent Link:International Hedge Fund Acquisition Trend
Tags: International hedge fund distribution, international hedge fund sales, international hedge fund marketing, hedge fund marketing, hedge fund sales, hedge fund acquisition, Japanese hedge fund, hedge funds in japan

Link to This Resource: International Hedge Fund Acquisition Trend

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Hedge Fund Bandits

Hedge Fund Bandits

Hedge Fund Performance Article

Hedge Fund Performance ArticleTwo hedge funds made out like bandits this year thanks to short positions in securities associated with subprime home loans. Paulson and Co. has returned over 400% so far for 2007 while Scion Capital had gross gains of close to 100%.


This in itself isn't too surprising what is interesting is that they are trimming down those positions and using their capital to now bet against corporate debt. Scion specifically noted betting over $2.2B against corporate debt. It might seem odd that a hedge fund would give away it's strategy like this but the more people that add to short positions the better for him. More sellers + less buyers = more Scion profits.

Read more articles like this within the Hedge Fund Performance Category of this hedge fund blog.

- Richard

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Permanent Link:Hedge Fund Bandits
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Book Review: An American Hedge Fund by Timothy Sykes

Book Review of "An American Hedge Fund" by Timothy Sykes




The Positives

  • Great read for a trader, or anyone aspiring to be a trader or start their own hedge fund

  • The book stresses the important discipline of trading, I don't think the importance of discipline can ever be stressed enough for any career track

  • The book is written from the perspective of a small hedge fund, this is unique. 80% of hedge funds have under $50M in assets yet all of the press and well known stories is about the huge funds in London and NY

  • Many people criticize Tim's book, some go as far as to say that he doesn't have the right to write a book because he wasn't successful enough. Rubbish. First of all learning from other failures is always important and Tim admits part of the value of the book is learning from his mistakes. Second, I believe everyone has the right to write a book and I would dare any of his largest critics to write a more interesting or unique store of how they got to age 25 .

  • He is open and honest in this book, which is reare in the very close vested world of hedge funds. Most hedge fund professionals are known for living by the mantra "loose lips sink ships."

Negatives


  • The book is more about trading than a hedge fund, the meat of the book is about his personal journey and battle against the discipline of emotions involved in trading

  • I can't help but think that if his message is discipline why didn't he climb back on the horse and refine his own abilities to be more disciplined and perfect his trading or work for a larger trading house or hedge fund?

  • As a review on what happened with his hedge fund launch it would seem like the 3 big mistakes to learn from were investing in the ticketing company, lack of trading discipline, and not building a full hedge fund team or third part marketer to promote his fund.

Overall the book was an easy quick read and pretty interesting if you are currently a trader or looking at starting your own fund. I don't think it is of the same quality of Running Money but I did get latched on to it finding myself reading it during my lunch breaks and rides home from work.

Enjoy this book review? Read a few more by visiting our Investment Book Reviews Directory.

- Richard

Permanent Link: Book Review An American Hedge Fund by Timothy Sykes

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Hedge Fund of Fund Interview with Salomon Konig

Hedge Fund of Fund Interview

Hedge Fund of Fund Interview with Salomon Konig, CEO of GPS Asset Management






- Richard

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Permanent Link: Hedge Fund of Fund Interview
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Hedge Fund Interview: Shannon Burchett on Commodities

Hedge Fund Interview

Hedge Fund Interview: Shannon Burchett on Commodities








- Richard

Permanent Link: Hedge Fund Commodities Interview

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Related Terms: Hedge Fund Interview, hedge fund commodities, commodities interview, hedge funds interview

Link to This Resource: Hedge Fund Interview: Shannon Burchett on Commodities

http://richard-wilson.blogspot.com/2007/11/hedge-fund-interview-shannon-burchett.html

What is a Hedge Fund

What is a Hedge Fund?

Q & A: What is a Hedge Fund?

What is a Hedge Fund?I often see Yahoo Questions, Linkedin Questions and HFMA questions about what is a hedge fund, what are hedge funds, how are hedge fund different from mutual funds? etc. To help answer these questions here is a video that explains what a hedge fund is.




Want to learn more about hedge funds? I have a free e-book on hedge funds available here: Download Hedge Fund Blog Book

Read dozens of additional articles like this within the guide to Hedge Fund Terms.

- Richard

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Tired of reading articles? Watch more videos like this one above within the Hedge Fund Videos Directory.

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Amaranth Hedge Fund

Amaranth Hedge Fund

Amaranth Hedge Fund Videos

Below are two videos on the Amaranth Hedge Fund. This hedge fund is famous for being the most widely talked about fund blow up in the history of the hedge fund industry.






- Richard

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Permanent Link:Amaranth Hedge Fund
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Hedge Fund Interview: Larry Jones CIO of a Hedge Fund of Fund

Hedge Fund Interview: Larry Jones, CIO of Hedge Fund
of Funds Group Nedgroup Investments





In this interview Jones talks about his hedge fund of fund business and how using fund of hedge funds is in theory less risky than investing in an individual hedge fund.

- Richard

Permanent Link: Hedge Fund Interview: Larry Jones, CIO of Nedgroup Investments

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Tags: nedgroup investments, hedge fund video, hedge fund interview, larry jones, cio, hedge fund of funds

Link to This Resource: Hedge Fund Interview: Larry Jones CIO of a Hedge Fund of Fund

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Hedge Fund Consultants and Advisors :: Consulting

Hedge Fund Consultants and Advisors

Hedge Fund Consulting Firms


Hedge fund Advisors and consulting firms in general have grown in size and numbers of the past five years.

One thing I have learned about the hedge fund industry is that with dozens of sources of capital, hundreds of professional and software-based services and outsourcing options, and thousands of trading strategies there is a hedge fund advisor or consultant for every area that you are working in. Do you run a forex hedge fund? There are hedge fund consulting firms and advisors out there to help you grow your assets, identify new trading strategies, improve your risk controls, or outsource your hedge fund accounting, compliance, and back office operations. Sure they all cost money, there are no short cuts to success and you can model your actions after others who have succeeded before you. If you have a great strategy or fund you can find capital for it. If you have some capital available to re-invest in your business you might want to re-consider investing it by spending a day with a consultant or specialized hedge fund advisor that can ensure you are not taking the long-route towards your goals.

Send me an email or call me if you are looking for a specific Hedge Fund Consultant or Hedge Fund Advisor.

Hedge Fund Consultants, Consulting Firms and Advisors I can help you connect with:

  • Hedge Fund Accounting Consultants & Advisors
  • Hedge Fund Outsourcing Consultants & Advisors
  • Hedge Fund Due Diligence Consultants & Advisors
  • Hedge Fund Marketing Materials Consultants & Advisors
  • Hedge Fund Prime Brokerage Consultants & Advisors
  • Hedge Fund Public Relations (PR) Consultants & Advisors
  • Hedge Fund of Funds Consultants & Advisors
  • Hedge Fund Compliance Consultants & Advisors
  • Hedge Fund Sales Consultants & Advisors
  • International Hedge Fund Consultants & Advisors
  • Hedge Fund Multifamily Office Consultants & Advisors

- Richard

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Permanent Link: Hedge Fund Consultants and Hedge Fund Advisors
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Link to This Resource: Hedge Fund Consultants and Advisors :: Consulting

http://richard-wilson.blogspot.com/2007/11/hedge-fund-consultants-and-advisors.html

Affiliated Managers Group Strikes Again

Affiliated Managers Group

Affiliated Managers Group Strikes Again


Affiliated Managers Group The Affiliated Managers Group just announced it is investing in ValueAct Capital a well established and highly profitable hedge fund. The group has over $6B in assets and has been making agressive multi-billion dollare investments over the past couple of years. Sources say that the stake will be of around 25% in lines with their previous buy-in to AQR Capital Management.

Hedge Fund Consolidation

The forces that are creating this consolidation are the same that inspire new hedge funds to crop up each week, it is highly profitable to run a fund if you can survive and get results. I think we are still a few years away from the height of hedge fund consolidations.

- Richard

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Permanent Link:Affiliated Managers Group Strikes Again

Tags: Affiliated Managers Group, AQR Capital Management, ValueAct Capital Management, hedge fund consolidations, profitable hedge fund, new hedge fund, assets under management, hedge fund buyouts, hedge funds and private equity

Link to This Resource: Affiliated Managers Group Strikes Again

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Hedge Funds in Boston, New York and CT

Hedge Funds in Boston, New York and CT

Hedge Fund Assets Rising in Boston, New York and CT


Hedge Funds in Boston, New York and CT Many hedge funds in Boston, New York and CT have been gaining lots of attention from capital heavy private equity firms, merchant banks, and hedge fund industry basics giants. Hedge fund seed capital investments in the management companies of hedge funds is intriguing because:

  • These hedge funds are starving for capital. 80% of all hedge funds have less than $50M in assets and several come to a point where they have great performance but unless they can surpass the $100M mark the business isn't really proftiable enough to maintain. Many will close business if they do not meet a certain capital threshold by a five or seven year milestone.
  • If the performance is there, capital and marketing resources is often the missing piece to the small hedge fund puzzle towards asset gathering solutions.

  • Their investment grows in a compounded fashion along with the investment returns of the hedge fund manager's products.

The hedge funds in these three states seem to be sucking up the majority of the hedge fund seed capital being put to work in the US because of accessibility from Europe, proximity to New York, and reputation as being a hot bed for high performing hedge fund managers.

- Richard

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Permanent Link: Hedge Fund Assets Rising in New York, Boston and CT

Tags: Boston Hedge Funds, New York Hedge Funds, CT hedge Funds, Hedge Funds in CT, Hedge Fund in Boston, MA hedge funds, hedge fund search, hedge funds in new york, boston hedge funds, CT hedge funds, hedge fund investing trend

Link to This Resource: Hedge Funds in Boston, New York and CT

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Multi-Family Office Wealth Management

Multi-Family Office Wealth Management

Multi-Family Offices & Wealth Management


Multi-Family Offices & Wealth ManagementThere are over 85,000 people in the world with a net worth of over $30M. In the United States there are an estimated 3,000 family offices catering their services to high net worth and these ultra high net worth individuals.

Family Office Trends

Family offices were initially created as financial partners for ultra wealthy people with well over $100M in assets. They would help manage every single financial aspect of the individual's or family's lives so that their capital could be preserved and put to best use to fulfill their goals. Recently many larger wealth management firms calling themselves family offices and at least half of all family offices outsource major functions such as accounting and tax services. While most family office services are provided in a consultative fashion that is part of your base fees owed special projects or assignments can cost high net worth individuals $300-$600/hr.

Family Office Due Diligence

It might seem obvious that every wealth management office has technological tools to create an asset allocation model that fits your risk/reward/return preferences but this is far from the truth. The majority of family offices do have these tools as they are known for investing heavily in technology, but you should also ask about them. Other things that seem important to consider while Choosing a family office seem to be:
  • Their number of clients
  • Average net worth/client
  • Experience of the principals
  • Experience of those directly serving your needs
  • Would you be their biggest client? Smallest?
  • Total AUM of the family office
  • Family office employee to client ratio
  • Client opinions, quotes and referrals
  • Industry reputation
  • Their view of money management - active vs. passive
  • What their take on Hedge Funds, Fund of Hedge Funds, and ETFs are
  • How they design portfolio models
  • Location
On the topic of family office location if you have worked with a truly excellent family office please leave a comment below or email me and I'll begin completing the following list of family offices below:
  • New York, NY Multi-Family Offices:
  • Boston, MA Multi-Family Offices:
  • London Multi-Family Offices:
  • Geneva Multi-Family Offices:
  • Zurich Multi-Family Offices:
- Richard

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Permanent Link: Family Office Wealth Management

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Link to This Resource: Multi-Family Office Wealth Management

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Hedge Fund Industry White Papers

Hedge Fund Whitepapers

Hedge Fund Industry White Papers

Hedge Fund WhitepapersI have had several people asking me some basic questions about hedge funds and I have sometimes already answered their questions by chance in the past. Today I just wanted to provide some links to some thorough hedge fund industry white papers that I found online a while ago.

Top 5 Hedge Fund Industry White Papers

All of these resources will be permanently posted within the black column on this hedge fund blog to the right. Let me know if you have a favorite white paper that is better than one of the examples above.

- Richard

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Permanent Link: Hedge Fund Industry White Papers

tags: hedge fund article, hedge fund white paper, hedge fund publication, hedge fund information, hedge fund investment portfolio information, hedge fund operations risk, hedge fund trends article, information on hedge fund strategies, hedge fund due diligence and research

Link to This Resource: Hedge Fund Industry White Papers

http://richard-wilson.blogspot.com/2007/11/hedge-fund-industry-white-papers.html

Raising Capital With Tenacity

Raising Capital

Raising Capital With Tenacity


Raising CapitalWhy do most salespeople fail in hedge fund sales? Here's one take:
  • 44% of all salespeople quit trying after the first call
  • 24% quit after the second call
  • 14% quit after the third call
  • 12% quit trying to sell their prospect after the fourth call*

This means 94% of salespeople quit before the fifth phone call while 60% of all sales are made after the fourth call. This means that the overwhelming majority of hedge fund salespeople probably don't even give themselves a shot at selling their products.

*Data from Herbert True, a marketing researcher at Notre Dame University

Mid-day Update: Funny story, I wrote this post at 6AM this morning. I just got back from lunch and caught a call back from a financial advisor I have emailed once and left 5 voicemails for over the past 6 months. I had heard nothing and now he is interested in investing in one of our products. Tenacity paid off this time around.

Interested in hedge fund marketing? Read dozens of more hedge fund marketing & sales articles along with details on third party marketing within the Hedge Fund Marketing Guide.

- Richard


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Related Terms: Raise capital, raising capital, marketing hedge funds, hedge fund sales and marketing, hedge fund sales, hedge fund growth, raise assets under management, sell hedge fund

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Hedge Me Book Review

HedgeME Book Review


I found Hedge Me to be a great guide to beginning a career in the hedge fund industry. Some have bought Hedge Me simply for the comprehensive list of hedge fund employers and recruiters that is included in the book. The hedge fund industry is a very competitive place to work and by reading this guide you can increase your chances of getting a job as well as possibly avoiding the mistake of working in the wrong type of hedge fund position.

For example this book provides insights into the day-to-day activities of hedge fund traders, analysts and sales professionals. This shows you what their schedules and responsibilities look like and it can help paint a clearer picture that is sometimes hard to piece together through reading articles online and conducting informational interviews.

Hedge Me is also great for statistical references on what you can expect to get paid and how large the industry is. If nothing else you will have hard numbers to go off of and if you can negotiate $35 more pay than that alone has paid for the price of this book.

Enjoy this book review? Read a few more by visiting our Investment Book Reviews Directory.

- Richard


To read dozens of additional articles related to Hedge Fund Jobs like this one please visit our Hedge Fund Employment Guide.

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Hedge Fund Articles

Hedge Fund Articles

A Sample of My Hedge Fund Articles

Hedge Fund Articles
Let me know if you are looking for a specific type of hedge fund article and I can help guide you to one.

- Richard

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Link to This Resource: Hedge Fund Articles

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Top Hedge Fund Blog Posts

Top 10 Hedge Fund Blog Posts

My hedge fund book can be downloaded for free at http://hedgefundsbook.com/You may influence the content published for this blog by voting below.

- Richard

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Link to This Resource: Top Hedge Fund Blog Posts

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Exchange-Traded Notes

Exchange-Traded Notes

(You may also view this page later at http://www.Exchange-TradedNotes.com)

One of the fastest growing trends in new investment products is the development of Exchange-Traded Notes. Contrary to exchange-traded funds these are debt instruments that allow banks to package structured notes for the retail market. As the name implies these products can be freely traded on an exchange like an ETF and they do track relative indexes.

While some exchange-traded notes will have a general structured note exposure many will specialize in commodities or currencies and have tax advantages that aren't always seen in a exchange-traded fund product.

Some of the banks releasing different forms of echange-traded notes and enhanced exchange-traded notes include Barclays Bank, Goldman Sachs, Bear Stearns, Deutsche Bank, and J.P. Morgan Chase. You can be that Wisdom Tree, Envestnet, Vangauard, and Powershares will soon be releasing similar products. They are really modeling these so that they look and feel very similar to exchange traded fund products which have exploded in popularity over the last five years.

- Richard

Permanent Link: Exchange-Traded Notes
Alternative Link Address: http://www.Exchange-TradedNotes.com
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8. Hedge Fund Due Diligence
9. Hedge Fund Terms

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Great Exchange Traded Note Article: http://online.wsj.com/article/
SB119396588032780031.html?mod=mkts_main_news_hs_h

Link to This Resource: Exchange-Traded Notes

http://richard-wilson.blogspot.com/2007/11/exchange-traded-notes_02.html

Private Equity Investor Road Shows in South Africa

Private Equity Investor Road Shows in South Africa


Private Equity Investor Road Shows in South AfricaMany of the largest institutional pension funds making their way through South Africa on a roadshow to review possible private equity deals. In a news piece this morning Martin Arnold of the FT said that, "Investments in African private equity have more than doubled in a couple of years, as big US, European, Middle East and Asian institutional investors have raised their allocation to emerging markets and sought to diversify their portfolio." South African Private Equity firms raised $1B in 2005, $2.35B in 2006, and now with a couple months left to go they are up over $2B in additional investments for 2007.

China, India, and South Africa?

The explosive growth of China and India over the past 5-7 years has really sparked the interest of investors large and small due to their seemingly weak correlation with the US stock market and large returns. The reason why pension funds are going to South Africa is that any move they make needs to be well diversified to manage risk. If they invest in a few international private equity firms, those firms should probably be based in more places than just China and India. Many pension funds hire institutional consultants who are paid highly for their ability to create a risk budget rand run portfolio optimization analytics which include the correlation of returns in different national markets and make recommendations based on that analysis.

What's next?

Usually what starts in the institutional investment world eventually is pushed down through the bank channels, investment platforms, broker-dealers, and retail clients. I would guess that in 3-5 years there are a few South African mutual fund and etf products that do well while the hedge funds and private equity funds in the area continue to grow.


- Richard

Permanent Post: Private Equity Investor Road Shows in South Africa

Related Posts:
  1. South African Hedge Funds
  2. Dubai Hedge Fund and Private Equity Activity
  3. Chinese Hedge Funds
  4. Hedge Fund Due Diligence
  5. Hedge Fund Marketing
  6. Hedge Fund Research
  7. Prime Brokers
  8. Hedge Fund Associations
  9. Hedge Fund Databases

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Link to This Resource: Private Equity Investor Road Shows in South Africa

http://richard-wilson.blogspot.com/2007/11/private-equity-investor-road-shows-in.html
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