Tips for Screening Hedge Fund Marketers: #5

August 14, 2007 |

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

This is the last tip in our five part series on effectively evaluating hedge fund marketers. 

 What other business interests are they engaged in?

Ask for a description of the range of business activities in which the firm, and all affiliates, subsidiaries, parent companies are involved. The answers could be very telling and alert you to possible conflicts of interest. Additionally, ask the firm to describe other business activities in which their key personnel have an active role and the amount of time spent on such businesses. 

Remember the case involving a small hedge fund a few years back?  It was a hedge fund that was prominently listed on a well known online database.  Unknown to many of the investors visiting the site, the owners of the database were suspected of also having a marketing relationship with the fund.  It wasn’t a happy ending.

Comments