The role of investor relations is often intertwined with that of marketing at hedge funds. Both work together as a team to help increase the firm’s investor base and keep current investors informed and happy.
However, a distinction can be made between investor relationships professionals who’s job it is to bring new capital into the fund, versus those who focus on managing relationships with existing investors.
The first group, the “rainmakers”, are generally more senior and have an extensive network of contacts in the industry and among institutional investors.
Because they are dealing with high net worth investors and senior executives at institutions, this professional will need outstanding personal skills and a comfort level with travel and entertainment.
Junior investor relations staff focus on communicating with existing investors, providing them with marketing materials and updates on the performance of the fund, and handling their inquiries. They may also be involved in developing presentations and maintaining and updating the firm’s database of investors.
The number of investor relations staff, and in fact, whether a hedge fund even has dedicated investor relations people, depends on the size of the hedge fund. It’s unusual for a hedge fund with assets of less than $1 billion to have someone solely devoted to investor relations. Larger funds, however, may have several people who divide up the responsibilities of client-facing activities, developing marketing materials and attracting new investors.
Next time, we’ll look at some of the specific tasks and qualifications for investor relations jobs at hedge funds.