I attended this past week the Geneva Family Office Conference where I spoke on “why should hedge funds be part of a Family Office asset allocation”.
Interestingly some Family Offices volunteered a few tips on what they were expecting/looking for in hedge funds. The two factors that they put out first were TRUST and TRANSPARENCY, they biggest fear being STYLE DRIFT. This obviously can have a few very different meanings so they elaborated further in a few practical points:
- Produce a written DDQ
- Communicate via clear reports
- Produce and distribute a Risk Dashboard
- Make your decision/investment process clear and explain how it lead to the current state of the portoflio
- Demonstrate alignment of interest
- Be/participate in databases
- Be open to/facilitate peer analysis
These are not going to be everybody’s cup of tea but feed back is a gift, especially when it comes from potential investors.
Alpha Finance Advisors will be very happy to help you put all this in place. Feel free to contact us.