It Takes A Lot More Than Performance To Get Institutional Allocations

With a new study showing smaller hedge funds tending to outperform, why do most of the assets under management gravitate to the more considerable funds? Asset gathering success is about more than returns performance, says hedge fund marketer Don Steinbrugge. For pension fund investors, it is about deep research capability, risk management heft, fund manager pedigree and the ability to clearly explain a unique point of differentiation.

While new tools and services are continually being developed that assist smaller hedge funds with a quality product compete, penetrating the confined world of significant asset allocators remains a challenge for those not recognized and endorsed. But successful funds are breaking past these barriers and getting their message past the traditional...