Raising Capital for Hedge Fund Through Brand Positioning

Yen is the third most actively-traded currency in the world

An emerging hedge-fund manager targeting Japanese equities was distracted by marketing and sales activity. One reason was that they were preparing regular reports in-house, putting too much time into documents that served too many audiences. The firm collaborated with us to streamline the communications-development process development process, while we committed to building broader investor awareness of their strategy. Our goal was to elevate the brand among institutional investors as a prerequisite for joint asset-gathering activities.

External Engagement. We introduced the manager selectively to a risk-appropriate array of family offices, fund-of-funds, and ultra-high-net-worth names. The challenge was to revive interest in an asset class that had been sidelined by global investors because of deflationary trends in the Japanese economy. We outlined a realistic marketing program suitable for a new-to-market hedge fund; we helped to define a worldwide sales funnel to formalize the capital-raising process.

Summary Points

Communications Solution. We reworked the monthly performance report, establishing a reader-friendly layout suitable for the institutional market and realigning focus on the strength of their performance track record. The firm’s dedicated audience embraced standardized presentation of commentary, key data, and attribution analysis. Meanwhile, the manager benefited by outsourcing elements of the recurring creative process to free up time for core duties, such as trading and research.

Follow-Through. The result was more effective awareness-building with investor-prospects and greater relationship impact with investor-clients. Prior to rolling-out our work, fund leadership—as an emerging hedge-fund manager—was frustrated by the challenges of targeting size-appropriate capital sources. We delivered a heightened impression of professionalism to support more aggressive asset-capture activity, while maneuvering through a faltering environment for Japan-focused advisors.

Note: This work was completed by our principal at a now-dormant firm. The featured image depicts a partial ¥10,000 note.

Banner Image: Gina_sanders at Can Stock Photo Inc.