Hedge fund managers: Track record talks loudest

Hedge fund managers need to realize that many investors will be attracted most by track record and big-name managers.

According to TABB Group’s latest report, smaller hedge funds should be leaping for joy as investors redirect themselves, having been rejected by large funds. Some 20% of participants in the financial market analyst’s 2005 survey said they were no longer accepting new capital, and more than half of large funds have narrowed their targets to a very specific set of investors.

“This creates an opportunity for smaller funds to attract the investors that do not have access to the well-known and well-funded money managers, but want to allocate some of their money to hedge fund strategies,” says the report.

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