| Anyone who has the ability to successfully | | | | Hedge Fund of Fund of Hedge Fund Database |
| navigate the many channels of capital within the | | | | Sample. |
| hedge fund industry is worth their weight in gold | | | | 4. Ensure that the database is updated at least |
| (and that’s rising every day). There are two | | | | once a quarter, contact details and firm |
| major components of marketing and selling a | | | | information gets old very quickly. |
| hedge fund which each take constant attention | | | | 5. Expect to pay $750-$8,000 for a high quality |
| and refining. | | | | hedge fund database, many cost around $2,800 |
| 1. Understand the DNA of the many distinct | | | | while others can cost up to $30,000/year. Be |
| distribution channels open to hedge funds for | | | | sure and know the trade-offs of buying a physical |
| raising capital and | | | | database versus subscribing to one online. If you |
| 2. Having an electronic hedge fund of fund of | | | | don't have a hard copy of the data in Excel or |
| hedge fund database of the right people to call on | | | | Access format you may not be able to use it |
| within those channels. | | | | once a time-based subscription expires. For some |
| While some people develop their own databases | | | | firms this is fine, for others it would be a costly |
| from scratch this is often a long painful road with | | | | mistake. |
| many days spent leaving voicemails with firms | | | | 6. Make sure the hedge fund database you use is |
| that have gone out of business, merged, switched | | | | compatible with your systems. Do you use |
| investment focus or charge too high of fees to | | | | SalesForce? Act? Goldmine? Excel? Word?(lord |
| work with. This has led to many hedge funds | | | | help you) |
| investing in fund hedge fund databases that are | | | | 7. While you are kicking the tires of your potential |
| automatically updated with half a dozen pages of | | | | new hedge fund database make sure it has |
| information on fees, structure, management | | | | complete information on a firm. You don’t |
| information, etc. This trend with hedge fund | | | | want to call a firm asking if you can send over |
| databases goes along with the “outsource | | | | your PowerPoint presentation only to find out |
| everything that is not our core competence” | | | | they are really a competitor or a division within |
| model that many both emerging managers and | | | | another firm you called that same day. |
| $1B+ players have taken. | | | | 8. Don’t steal a database. This may sound |
| If you need a list of hedge fund of funds or are | | | | obvious, but it is common for employees to copy |
| thinking of purchasing a fund of hedge fund | | | | parts of a database for later use or use some |
| directory or database here are my top 9 tips: | | | | other un-ethical means of obtaining database |
| 1. Take the time to call or at least email the firm | | | | details. Don’t, it is not worth it. Always take |
| who offers a fund of hedge fund database, these | | | | the high road and you can stand behind every |
| will sometimes be referred to as fund of hedge | | | | action you have ever taken. |
| fund or fof directories. | | | | 9. This list only contains 9 tips instead of 10 |
| 2. Only work with well known, reputable firms | | | | because this one is worth more than the rest |
| that specialize in providing hedge fund databases | | | | combined. Ask hard questions when you are |
| or hedge fund of fund databases. Avoid small | | | | buying fund of hedge fund database. Ask how |
| shop fly-by-nighters at all costs | | | | often your database details will be updated. Ask |
| 3. Take the time to really get familiar with the | | | | exactly how many hedge funds are updating their |
| information provided within the database, ask for | | | | information. Some databases will say that they |
| a sampleof what the information will look like. It | | | | have details on 9,000 hedge funds while the |
| really is an investment that could save you literally | | | | reality is that some of them haven't updated their |
| thousands of hours IF you pick the right hedge | | | | information in 4 years...make sure all of the data is |
| fund database for your business model. See a | | | | being updated at least once a year. |