Investor relations professionals at hedge funds often migrate into the job from previous experience in client services or marketing at other financial organizations, or capital introduction at prime brokerages. Experience at an investment consultancy may also give you the skills needed to work in this role at a hedge fund. You would have a familiarity with pension fund and other institutional investors, and have started developing a broad network of contacts of potential investors. This would all be valuable to a hedge fund firm and position you for healthy base and bonus package.
More junior investor relations staff will respond to client questions about the fund and general market and economic conditions. He would perhaps work on the firm’s quarterly newsletter or other client-facing communications, meet with existing investors to interest them in other funds, and arrange for members of the firm to appear at industry conferences and other speaking engagements to help promote the funds.
As an investor relations professional, you will wear many hats, and be involved in all aspects of the sales and client service activities of the fund. Investor relations is one area where someone with no previous hedge fund job experience can break into the business. Though you should have outstanding interpersonal skills and a solid understanding of hedge fund investment strategies.
References:
www.forbes.com
Getting a Job in Hedge Funds By Adam Zoia, Aaron Finkel, John Wiley and Sons, 2008
www.hedgeworld.com
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.
