Start Marketing Your Hedge Fund To Investors and Raising Capital with these tips and tricks. Begin to create a sophisticated Investor Relations program today!

1. MANAGE A HEDGE FUND:
MARKETING TO INVESTORS &
RAISING CAPITAL

2. REALITY
Star%ng
a
hedge
fund
is
no
easy
feat.
It
is
extremely
compe%%ve
and
incredibly
pricey.
It
will
run
you
at
least
$85,000-­‐$100,000
just
to
set
up
your
hedge
fund
–
not
to
include
hiring
any
internal
staff.
It
also
does
not
include
the
expenses
you
will
need
to
survive
during
the
capital
raising
phase.
Many
funds
take
years
to
raise
enough
capital
to
aFract
the
ins%tu%onal
dollars.
So
really
think
long
and
hard
about
both
your
start
up
costs
AND
your
annual
expenses.
Most
managers
forget
they
are
crea%ng
a
business
not
just
trading
a
strategy.
Remember:
Your
assets
are
NOT
your
revenue.
IDEA
2

3. WHY
LAUNCH
NOW?
A
ques%on
always
on
an
investor’s
mind
is
what
makes
your
strategy
different
and
how
does
your
background
directly
reflect
that.
Market
environment
plays
a
huge
role
into
how
investors
view
your
strategy,
but
more
importantly
they
want
to
know
that
it
is
a
sustainable
strategy
across
various
market
cycles
–
how
does
it
perform
across
both
the
high
and
the
low
periods?
Is
the
infrastructure
in
place
to
support
the
strategy
during
these
periods?
Market
Cycles
change
all
the
%me
so
in
marke%ng
your
fund
you
want
to
make
sure
to
illustrate
your
successes
not
just
during
the
high
periods,
but
the
low
ones
as
well.
3

4. WHAT
IS
YOUR
UVP?
USP?
ELEVATOR
PITCH?
Understanding
your
unique
value
proposi;on
(UVP),
unique
selling
proposi;on
(UVP)
and
elevator
pitch
are
vitally
important
to
gaining
interest
from
both
investors
and
the
investment
community
at
large.
Be
sure
to
understand
the
difference.
Unique
Value
Proposi%on:
A
statement
that
clearly
highlights
the
tangible
results
a
client
can
expect
from
you
in
using
your
product
or
services.
Unique
Selling
Proposi%on:
A
statement
that
illustrates
your
firm’s
difference
from
your
compe%tors.
Elevator
Pitch:
A
short
speech
providing
a
general
overview
of
your
business
and
your
market
value.
4

5. UNDERSTANDING
THE
HEDGE
FUND
UNIVERSE
–
NEW
LAUNCHES
5

6. UNDERSTANDING
THE
HEDGE
FUND
UNIVERSE
–
INVESTOR
INTEREST
6

7. 5
TIPS
ON
MANAGING
INVESTORS’
EXPECTATIONS
It
is
no
secret
that
it
has
been
a
very
tough
capital
raising
environment
for
managers.
Investors
are
geZng
smarter
and
are
looking
holis%cally
at
a
fund
during
their
opera%onal
due
diligence.
Understanding
how
investors
assess
your
fund
will
help
you
beFer
understand
how
to
prepare
for
those
mee%ngs.
Did
you
check
all
the
boxes?
Tip
#1:
Set
investment
minimums
to
help
offset
the
operaQonal
cost
and
stress
of
providing
SMAs.
What
is
your
firm’s
level
of
transparency
to
investors?
Do
you
provide
Separately
Managed
Accounts
(SMA)
–
SMAs
are
great,
but
operaQonally
they
can
be
a
nightmare
for
a
small
fund.
Investors
want
to
monitor
your
fund
to
make
sure
that
your
investment
thesis
is
validated
by
investments
made.
You
can
provide
investors
with
a
high
level
of
transparency
without
the
need
of
se]ng
up
SMAs.
Tip
#2:
Standardize
how
you
deliver
investment
data
to
investors.
Don’t
change
the
benchmarks
provide
an
explanaQon
in
your
monthly
report
for
why
returns
weren’t
what
you
had
hoped.
Are
you
consistently
delivering
the
same
benchmarks
even
in
bad
months
or
are
you
manipula7ng
the
data
to
your
advantage?
Investors
want
to
see
trends
this
is
one
of
the
reasons
why
the
allocaQon
takes
as
long
as
it
does.
Investors
understand
that
bad
months
happen,
but
they
want
to
know
a)
how
bad
did
you
perform
against
your
compeQtors
during
the
down
month(s)
b)
if
and
how
have
you
re-­‐adjusted
your
investment
allocaQon.
1
2 7

8. 5
TIPS
ON
DEALING
WITH
INVESTORS
ASSESSING
YOUR
FUND
(cont’d)
Tip
#3:
Ask
the
right
quesQons
when
interviewing
third
party
service
providers.
Make
sure
they
provide
business
value
outside
of
saQsfying
an
investor’s
ODD
checklist.
How
are
you
ve]ng
and
selecQng
third
party
service
providers?
Who
you
do
business
with
is
important
to
investors.
But
also
you
want
to
make
sure
you
are
choosing
service
providers
that
help
your
firm
grow.
Service
providers
are
only
so
good
as
the
service
they
provide
for
your
firm.
Tip
#4:
Actually
create
and
write
out
protocols
for
AML
and
Cyber
Security,
don’t
just
say
you
have
them.
Investors
may
request
a
copy
for
review.
What
are
the
policies
and
procedures
that
you
have
in
place
for
AnQ-­‐Money
Laundering
and
what
types
of
Cyber
Security
protocols
do
you
have
in
place?
The
rise
of
cyber
hackers
are
of
major
concern
to
investors
and
if
your
infrastructure
isn’t
sophisQcated
enough
to
appropriately
handle
and
safeguard
their
investment
–
then
guess
what
you
probably
won’t
get
that
allocaQon.
Tip
#5:
Take
Qme
to
pracQce
explaining
your
investment
thesis
to
someone
who
isn’t
well
versed
in
hedge
funds.
Is
your
investment
thesis
well
thought
out?
Can
they
understand
the
raQonale
of
your
strategy
to
where
they
are
compelled
to
invest?
Just
because
you
understand
the
ins
and
outs
of
your
strategy
doesn’t
mean
everyone
will
even
sophisQcated
investors.
3
4
5 8

9. THE
CAPITAL
RAISING
PATH
Tip:
Leverage
your
Prime
Broker’s
Capital
IntroducQon
Team
to
assist
you
in
the
capital
raising
process
whether
it
is
simple
advice
or
real
investor
leads.
START
GOAL
Family
&
Friends
Small
Ins%tu%onal
Investors
Large
Ins%tu%onal
Investors
Seed
Investor
Start
targeQng
family
offices
and
wealth
managers
Finding
a
seeder
First
Round
of
Capital
Raising
(personal
money,
family,
friends,
HNWIs
and
in
some
occasions
Seeder)
Congrats!
You’ve
raised
enough
money
to
akract
large
insQtuQonal
dollars.
9

10. Okay,
LET’S
REVIEW!
Leverage
your
Prime
Broker’s
Capital
IntroducQon
Team
to
assist
you
in
the
capital
raising
process
whether
it
is
simple
advice
or
real
investor
leads.
Get
to
know
SMAs
before
doing
one.
Set
investment
minimums
to
help
offset
the
operaQonal
cost
and
stress
of
providing
SMAs.
Standardize
how
you
deliver
investment
data
to
investors.
Don’t
change
the
benchmarks
provide
an
explanaQon
in
your
monthly
report
for
why
returns
weren’t
what
you
had
hoped.
Ask
the
right
quesQons
when
interviewing
third
party
service
providers.
Make
sure
they
provide
business
value
outside
of
saQsfying
an
investor’s
ODD
checklist.
Actually
create
and
write
out
protocols
for
AML
and
Cyber
Security,
don’t
just
say
you
have
them.
Investors
may
request
a
copy
for
review.
Take
Qme
to
pracQce
explaining
your
investment
thesis
to
someone
who
isn’t
well
versed
in
hedge
funds.
Tip
#1:
Tip
#2:
Tip
#3:
Tip
#4:
Tip
#5:
Tip
#6:
10

11. Get
more
%ps
on
how
to
aFract
investors
to
your
fund.
Schedule
A
Free
Consulta%on
with
Crea%veCap
Advisors
and
make
your
fund
invaluable
to
any
investor.
Tyra
Jeffries,
Founder
&
Chief
Execu7ve
Officer
tyra.jeffries@creaQvecapadvisors.com
|
www.creaQvecapadvisors.com
The
premier
MarkeQng
&
IR
consultancy
for
emerging
managers
11