My ERP Musings

ERP, ERP, some CRM and more ERP

All you need to know about Hedge Funds


A hedge fund is a private partnership that doesn’t have many restrictions and regulations by law. The Hedge Fund manager uses a range of investment techniques to invest the money in any way he or she sees fit. Usually this generates a higher return than from regular investments given its risk. Not everyone can invest in a hedge fund though. They are restricted by law to only let 100 investor in per fund, so there is a high minimum investment. Expect to be buying in at an average minimum of $500 000.


Misconducts in the past


In a time when the financial market is so unbalanced, it is important to find a reliable hedge fund manager. Typically, you won’t know exactly what these managers are doing with your money as they tend to be quite secretive about it. In the past we’ve seen a few managers charged with fraud or theft. Philip Falcone, a billionaire hedge fund manager, has just finished a trial facing his civil fraud charges that he used money from the fund to pay his own taxes. Allegedly he also favoured some clients above others. The firm and Falcone have agreed to pay $18 million to settle the case. Another hedge manager that went rogue is Anthony Chiasson. He was convicted in December of five counts of securities fraud and one count of conspiracy to commit securities fraud “Anthony Chiasson chose to be part of a corrupt circle of friends that cheated the market to gain an unfair trading advantage, and for that, he lost his career, his reputation and now he has lost his liberty,” said U.S. Attorney Preet Bharara.


The importance of CRM


There is a fine line that mustn’t be overstepped and it takes a great manager to complete a task with such massive responsibility. When investing, one is always taking a risk, but since the times are changing it is becoming more and more important for hedge fund managers to communicate with their investors. Clients are simply demanding a customer relationship, as it is becoming fundamental for doing business. You wouldn’t just hand your money over to anyone would you? It takes a lot of trust and a great relationship when you are talking about the amount of money needed to invest in a hedge fund. So hedge managers are slowly realising that their job is more than just about managing the money and building investor relationships is intertwined with it.


Luckily for them we live in a high technological world where investor relationship software is available for use. This software makes investor relations management more reliable as they can present hard facts to the clients. It also produces data-enriched views and reports covering client, investor and prospect behaviors and activities which are particular to the effective management of businesses. Investors can even log in to this software to download specific documents. This promotes a transparent way of conducting business and adds to the levels of trust. It leaves the customer well informed ensuring that their moolah is in safe hands.


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