Please see...need a business partner for a potentially lucrative derivative play on HF industry !!
Hey guys. Been in HF world for 13 months or so. I'm in investor relations and marketing. I realized something the other day. I will list it here, and if you have some interest in talking more about this with me, please email me.
-
JOBS Act was passed in 2013-2014. This allows hedge funds to essentially market to anyone, and anywhere. There are some limitations of course, but it greatly reduced the regulation.
-
I see very few funds using this properly. At least from my time in the industry. Part of the old school allure of HF's were their secrecy. Now that the veil has been lifted, it's game on!
-
There is analysis paralysis. It's all about boring databases filled with repetitive data like beta, alpha, correlation, concentration, sharpe ratio, etc. Historically the best capital raisers have not been the firms with best returns, so they must be doing something different.
I'll leave it at this. There is a MASSIVE, I repeat, MASSIVE untapped opportunity for someone to come in and develop a website, and blog that focuses solely on qualitative factors that make hedge funds stand out. Some ideas that I'll just briefly touch on are, 1-1 manager video interviews, Q-A's, blog posts, and Podcasts. There is no way this wouldn't make money. I would like to see if anyone has interest, with prior Asset Management or HF experience. I have 300 more ideas, and this would be so incredibly fun! Email me on here privately, and we'll go from there :)
-Tony
I hate to break it to you, but this is not a MASSIVE idea. This kind of already exists through CNBC and Bloomberg TV, as well as their websites. They have much bigger followings than you could get through your website and get big and small fund managers through there all the time. CNBC will practically suck your dick for you to appear on-air if you have even a small bit of clout. Absolute nobodies get on there all the time.
"I never want to be a part of a club that will accept me as a member" is a powerful strategy. Most good funds have some capacity issues and wasting a spot on a small client is not good business. You would be much better giving up one spot to a Morgan Stanley feeder fund and have them chase the small opportunities for you. This is how many funds go after that client base and for good reason.
+1 for trying
Yeah. I get what you are saying. There are comparisons to be made. However, this isn't PR/Media that I am after. This is humazining an industry. This is marketing that I want to do. Most of those interviews are 2-4 mins. They simply come on, give a stock tip or two, and disappear. CNBC ratings are down big time. In 2014 CNBC had their lowest ratings since 1997, and they stopped using Nielsen ratings as well. This is a very individual, and entirely web based project. Cable is dead. I want to actually help newer managers get leads and growth their AUM. CNBC is DOA.
I think you're asking the wrong question. Why do the HF PMs need you? So they can reach some untapped retail investor? PMs want a sticky capital base not 1,000 retail investors who don't understand all the metrics you highlighted. No PM wants a more skittish investor base - also imagine how much additional overhead support you would need to handle all the requests, start-up, maintenance, etc.
I can't knock the hustle, but I don't see a need for the product. In general, I feel that most HFs don't want their industry to be "humanized". There's actual a pride in being a bit mysterious.
There are two KEY factors here...
Why do you need a business partner to start a website? Just start it.
It's a massive project, and could use someone who has skills I lack.
Sounds like sell side research on PMs for FoFs. I still don't understand who you are serving - the PMs who dont have access to capital or some unique qualitative blog.
The PM more likely to use a PB / Capital Introduction team after friends / family. Better introductions from MS / GS then XYZ website. I'd bet the FoFs feel the same way. Regardless of whatever service you provide, they are going to do the due diligence around that PM so I'm not sure the value you provide in a 2-4 min clip - it's not like you're going to unearth some hidden all-star that's alluded you for years. The LPs are like the buyside for HFs (inception level sh right there) - they are the clients.
There's a questionable value proposition and that brings you the larger issue of how do you get paid? I'm assuming this isn't all out of the goodness of your heart
Iste quo vero consequatur qui itaque. Quas itaque et quo eum et harum. Minus culpa possimus voluptatem.
Non dolor voluptatem labore ut sit aut. Laboriosam non harum dolor iste.
Dignissimos minima soluta dolorem at itaque. Qui quod doloribus reiciendis. Alias excepturi dolores tempore velit. Nobis ea et iusto omnis ut blanditiis cum.
Harum accusantium sequi aspernatur voluptatum aspernatur alias molestiae. Aut voluptatem consequatur est provident eligendi occaecati quis. Omnis qui et temporibus id voluptatem. Consequatur qui labore maiores excepturi maiores ullam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...