We all know the costs of running a hedge fund have increased due to higher operational risk requirements and increased local, global regulation and compliance requirements . Building an internal marketing and sales team is also expensive as many firms find themselves in the difficult position of choosing to make a business development hire over another hire such as an investment analyst. In addition, an internal sales professional's reach may be limited to a single region / geography which narrows the scope for fundraising capabilities.
The break even for an emerging fund today is $86mm1. According to a recent survey, 55% of hedge fund managers surveyed said that this number will increase while 40% said this number will stay the same2. Thus overhead needs to be reduced by outsourcing.
As the global demand for outsourcing accelerates, Aquamarine Value is the one-stop shop that provides value added services such as: market commentary for funds, transparency of investment process and risk exposure for the firms' clients as product specialist for the firm, marketing, investor relations and capital introductions.
The advantage is direct US and Asian experience in investments within asset managers and asset owners from a combined front office perspective, accentuated with marketing and investor relations experiences and a global client reach that will contribute towards reduction of the firm’s overhead and costs.
By building a collaborative relationship with firms and having access to their clients, Aquamarine Value can help navigate emerging firms to find innovative outsourced solutions that will increase internal operational efficiencies thus enabling the firm to focus on their core competencies of fund performance and AUM growth.
Outsourcing is expected, Aquamarine Value is the new, unexpected outsourcing destination.
1.Jack Inglis, Sean Capstick, AIMA/GPP Emerging Manager Survey 2017, 5
2.Jack Inglis, Sean Capstick, AIMA/GPP Emerging Manager Survey 2017, 17