Pitch Perfect: How Investors Choose Hedge Funds (Advent)

September 2013

KEYWORDS: asset allocation, endowments, family office, foundations, Fund of Funds, hedge fund investor, Hedge Fund Managers, Hedge Fund Research, Institutional Investors, Liquidity, marketing, pensions, research management system, risk management, Survey, transparency, Volatility

Authors:

Advent

Organizations:
  • Advent

Summary:
Key Findings
1. Investors say they often see managers who cannot clearly differentiate their strategy
2. Many investors decide within the first half hour of a pitch whether or not to continue
3. Operational quality is one of the most important considerations when investors and consultants evaluate a hedge fund
4. Large institutional investors are not likely to choose hedge funds that do not have a system of record in place for their investment process
5. Three out of four investors want to see research management systems in place at funds they are considering

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