Thursday, April 30, 2015

Volatility Creates Hedge Fund Marketing Opportunity

Hedge fund marketing will get more traction this year as fund managers turn to complex hedge fund strategies to make profit despite surges in the market’s volatility.

The past year has not been stellar for hedge funds. October 2014 saw a lot of hedge fund managers losing their entire year’s gains. Despite this, recent surveys reveal that hedge fund strategies have been attracting investors who seek riskier approaches that are advantageous during periods of high market volatility, as is predicted for 2015.

In particular, some hedge funds benefited from their strategies when prices fell down. Those who scored high at the end of last year gained their returns by benefiting from falling shares. This hedge fund characteristic of being able to make returns whether prices are going up or down is the major attraction for investors.

The growing interest in risk-managing hedge fund strategies looks like it is more than a passing trend. The market volatility is a product of the end of the U.S. Federal Reserve's post-crisis asset purchase program and its effects will be felt for a while, as already demonstrated by the fall of a lot of oil assets.

According to one manager with more than $100 billion in assets under management, a lot of investors who previously had had no investment in hedge funds are now showing interest. They know very well that these strategies have been demonstrated to perform well when there is increase in volatility and there is more stock dispersion.

For example, the first half of 2014 showed that betting on both price gains and falls, also know as the "long-short" hedge fund strategy, resulted to about 10% returns. This, together with the strategy of betting on mergers and acquisitions, yielded returns bigger than the industry has seen in any full year since the 2008 financial crisis.

The Short of It

It is the job of fund managers to insulate portfolios from big economic downturns, but some criticize them for their high fees. Their management charges and commission can only be justified when they consistently show their ability to pull in returns and protect the portfolio.

Some investors are being cautious when choosing which hedge fund strategies to employ. It seems that the ability to bet on price falls are winning the most more followers in times when gains are more elusive because of a highly volatile market.

According to one global hedge fund manager, the long-short strategy has been a great way to hedge against the market correction and it will contribute to hedge fund services’ growing popularity this year. Hedge fund marketing can take advantage of this opportunity by pitching this strength to investors who fear the market’s volatility and seek insulation from it.

Tuesday, April 7, 2015

Dining With Your Workmates at a Hamptons Restaurant

Perhaps you got assigned to set up a meeting with a client at a Hamptons restaurant. Or you are hosting a night-out with the newbies. Or your boss wanted to treat you but asked you to plan the dinner. Whichever the case, dining with colleagues or superiors from work can be a tricky affair.

Here are some tips to get you through this task.

Make proper reservations (promptly). Proper reservations is not just about telling a restaurant that you’re coming. It means telling them exactly how many are expected, what time you’ll arrive, what seats or area of the venue you’d like to have (VIP area? The bar?), what kind of an office gathering you’d like (sit-down dinner? Or just cocktails?), among other details. If possible, you can also ask information on their bestsellers, and even order ahead. This means less time that you and your colleagues will spend waiting for something to munch on.

Be wise in planning the menu. Know what they want to eat: ask them what they’re allergic to, or if they’re vegetarian, or if they’re on a weight-loss diet. If everyone will be pitching in to pay for the bill, ask them as well what their budget is. If you’re feeling extra generous and want to impress your colleagues, you may opt to treat them to one fancy dish, or a bottle of fine wine. But if a boss is coming with you, tread carefully and check the situation before trying to impress them all.

Go easy on the alcohol. Yes, you’re technically out of your office. And yes, you are not spending this time in your official capacity as an associate at your law firm, or an account manager at your advertising agency. Still, dinners with colleagues still require you to be on your guard. This means going easy on the alcoholic beverages, as you do not want to be remembered as “that employee who passed out drunk at the Hamptons restaurant.” Whether you like it or not, your workmates and especially the bosses will still have their eyes on you, and the impression you make will inevitably affect your relationship with them at the office.

Relax. On the day of your dinner, be alert, but relaxed at the same time. If you’re not relaxed, you will be clumsy and prone to make such classic blunders as spilling wine on your shirt, or stepping on your boss’s foot. On the contrary, being relaxed lets you go through your meal with ease, and the attitude will likely rub off on your companions.