Tower Fund Services Releases New Video to Guide Hedge Fund Managers

Second video in a series designed to guide Hedge Fund Managers through common challenges

RED BANK, N.J.--(BUSINESS WIRE)-- Tower Fund Services today released their second video in a series designed to guide hedge fund managers through the common challenges faced by the emerging fund manager. This video provides some simple steps and insights into the capital raising process for new hedge funds.

Tower’s Co-founder, Vince Sarullo said: “AUM is the lifeblood of the investment management business and competition for assets is fierce. To grow AUM can be the single most difficult aspect of running a hedge fund business. Most small hedge funds are operated by former portfolio managers, traders or research analysts, who know how to manage money.

A true test will be diverting enough time towards marketing activities without sacrificing any investment performance. Raising capital should be a non-stop, full-time process, which requires devoting patience, time and commitment into crafting comprehensive marketing strategies. All too often we see managers feverishly scrambling to get their initial investors in and once they start investing, the capital raising efforts come to a grinding halt.”

Time is valuable, spend it wisely. Though it has not been quantified, there is a correlation of reduction in performance relative to the increase in manager activities not directly related to investment decisions.

Investors and prospects want their fund managers to focus on making money. However, they want to hear from the managers and not just via getting capital statements. How do you balance the time?

Based on a recent Tower survey of emerging managers that have been in business for under 5 years, areas that time is dedicated is fairly consistent with 50%-75% being dedicated to Investment Research/Market Research/Portfolio Management; 10%-25% being current investor relations; 0% - 25% spent on capital raising; and a small amount of time dedicated to other firm matters and outside industry related events.

About Tower Fund Services: Tower Fund Services is an independent third party administrator that provides an outsourced solution for alternative investment managers. Tower’s core business focus is start-up and emerging managers that are looking to grow their hedge, private equity, venture capital, real estate, and tax lien funds. We enable our clients to focus on their core business; investing, while having a high quality infrastructure support group behind them.

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20150319005038/en/

Tower Fund Services
Vincent M. Sarullo, 732-704-7297
[email protected]

Source: Tower Fund Services

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