New survey of investors and fund managers reveals gaps where improved IR can make a difference for hedge funds.
LONDON, September 2016: Hedge funds are not meeting the requirements of investors across a range of reporting and communications categories, according to a research study published by IRHalo, the technology-driven investor relations and communications consultancy. The study also reveals opportunities for fund managers to enhance their ability to keep or attract clients through improved investor communications.
IRHalo conducted a survey of 109 investors and 126 fund managers in April to June of this year, to obtain a more detailed picture on the IR requirements of hedge funds’ investors, and where service gaps continue to exist.
Among the most significant findings were:
- The majority of hedge fund managers lack awareness of the peers against which investors measure them, while their investors would like to see more of this analysis from managers themselves.
- Most investors are not satisfied with the level or quality of information available on hedge funds’ websites, yet only a minority of hedge funds see their websites as an IR tool. However, most hedge funds recognise a need to improve on their web reporting capabilities.
- Investors remain unsatisfied with the quality and detail of the information being presented to them by hedge funds; while in many cases, reporting is regular enough, more qualitative information is desirable.
- Investors are regular users of the internet for additional background information on funds and their managers, including to support or supplement investment decisions.
- Most hedge funds will employ on individual in a dedicated IR role, while smaller or newer firms may combine this role with other functions. Only a handful of much larger funds will retain bigger IR teams. Yet at the same time, hedge funds consider the IR function to be essential.
“This is the first study of this type which we have conducted, but it already points to some interesting gaps in the IR process which fund managers can address to generate a competitive advantage,” said Stuart Fieldhouse, Director of IRHalo. “With the technology currently available, it should be easy for even smaller or start up funds to develop an IR capability that rivals some of the bigger and more established firms.”
He added: “Peer analysis is one area where managers may be able to point to superior returns versus their real competitors, as opposed to benchmarks like a market index or risk free rates.”
The full survey is now available and free to download at the IRHalo website.
For further information on IRHalo and its services, please contact:
Tel: +44 (0) 203 151 7210 / +44 (0) 7793 882230 E: firstname.lastname@example.org
Press release distributed by PressHalo on behalf of IRHalo, on 26th September, 2016.