EXCERPT FROM ARTICLE, Hedge Managers Seek Marketing Help for Liquid Alts, by reporter Rachael Levy
Hedge funds are coming up with different ways to push their liquid alts offerings, with some hiring outside communications teams to reach retail investors while others partner with traditional firms that have proven marketing know-how. Uncertainty over how to wade into the retail market is driving the trend, insiders say. Hedge fund shops are trying to figure out the marketing function at a time when flows into alternative mutual funds are slowing....Indeed, boutique hedge funds are going directly to independent shops and other advisors, setting up dinners and private meetings to communicate the strategy implementation, says Bruce Frumerman, CEO of communications firm Frumerman & Nemeth. Still, too many hedge funds are relying on distribution through product platforms alone, he warns. “Just because you’re on a platform doesn’t mean there are going to be any sales,” he says. “Do not expect that any third party is going to represent you as much as you might want, or as effectively. Your firm itself has to sit down and put time, money and effort into how to communicate and sell.”
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