Liquid alternatives: What are gatekeepers and advisors looking for?

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You have the pedigree to launch a liquid alternative fund. We know the financial advisor marketplace and can help you stand out.

Not long ago, the paths to success in liquid alternatives (a.k.a. ’40 Act alternatives) were in uncharted territory. Now, they are getting more crowded, as hundreds of institutional money managers set course to reach higher levels of AUM. Some will succeed while others fall behind. What will separate your success from the rest? Two things: 1) clearly and concisely describing your investment process and outcome; and 2) highlighting your investment experience or “pedigree” as a true alternative investment provider.

The marketing/distribution challenge is different in liquid alternatives than in the institutional market, mainly because RIAs and broker-dealers serve as gatekeepers. They, in turn, rely on Morningstar and other retail research to screen managers and recommend funds. Your ability to reach end-investors depends on communicating clearly with the gatekeepers who want to know:

• Do you have a hedge fund track record?
• Can you demonstrate your ability to short?
• Do you invest in your own fund?
• If you are in a Series Trust, is the board adequate and invested?
• What are the capacity constraints of the strategy?
• Is your process transparent and repeatable?
• Is the risk management process demonstrable and repeatable?
• Can you illustrate risk and return in different market environments?
• Does your performance include statistics, such as upside/downside capture, correlation, alpha, beta and max drawdown?
• Do you compare your performance to standard industry benchmarks?
• Do you include net performance figures?
• How do your fees compare to others in your category?

Get ready, get set, launch!
Our Go-to-Market Plan defines and differentiates your offering vs. the competition, as seen through the eyes of gatekeepers, advisors and influencers who will generate investor awareness and acceptance of your fund(s).

In addition to creating positioning and key messages for your firm and fund(s), we will create an integrated communication plan to: 1) put momentum behind your launch; 2) sustain interest and AUM growth; and 3) avoid wasted time, motion and cost. The Go-to-Market Plan can also help you:

  • Define your strongest competitors and points of differentiation
  • Evaluate key vendors, such as administrators and distributors with RIC experience
  • Create strategy to access the most important advisor-driven platforms
  • Position your product on retirement plan platforms
  • Utilize your website and social media for maximum impact
  • Develop wholesaler support and training material

Why we are qualified to be your guide

Since 2004, Ulicny has worked closely with hedge funds and other alternatives providers. We have a track record of success in helping top hedge funds communicate directly with institutional investors.

In recent years, as liquid alternatives have grown exponentially, we have helped these same clients (and others) capture the new opportunities. We developed the industry’s first comprehensive wholesaler/advisor training for liquid alt mutual funds. Since then, we have provided strategic consulting to clients of all sizes, with diverse expansion goals and requirements.

We know this territory! We’re ready to go with you and be your guide, so you can launch confidently.

Learn more about our Go-to-Market Plan

—January 2013