SEI recently completed a survey of institutional investors and their perspective on hedge funds, the outcome of which was a list of four main factors Institutional Investors look for. We’ve reviewed the SEI factors, added one, and focused on how you can cater to the institutional investors needs through your website and how a good web presence can help you build and strengthen these relationships.
Historically, hedge funds have had to execute caution in regards to web presence and the remnants of this may still be affecting your choices. Wherever you find yourself on the evolutionary ladder of Hedge Fund websites, there are several factors to be aware of:
1. Transparency and Reporting
As a guide to what is possible, Goldman Sachs’ website is well worth a visit for inspiration – www2.goldmansachs.com. Ticking all the SEI boxes, their once dull and static website has been transformed into a multi functional, user friendly platform which gives a face to the business and has multiple resources to attract new talent. Although all aspects of the Goldman Sachs site may not be relevant to the average hedge fund, their approach to transparency and focus on people is exemplary.
According to the SEI survey, institutional investors’ priorities are transparency, excellent reporting and they want to see a clear investment strategy. Take a look at the Black Rock website for examples of clarity in this regard as well of great information structuring – they have a lot of it to manage – http://bit.ly/195aAf. The SEI survey also reveals that institutional investors believe well managed firms return a higher performance (54% pointed this out). Anyone accessing a financial services website will make judgements about the business and are unlikely to be inspired if the structure is poor or information static or out of date. Like a window, a website should offer a unique insight into your business for your current and future investors.
Transparent accessible information can be provided behind a personal log-in, now a feature of the majority of hedge fund sites. Companies such as GAM and Angelo Gordon and Co. make non-subscribers aware of what lies behind the wall, including downloadable status updates and reports on demand. Considering the information overload we struggle with today, it is essential that the user is able to get to the information that’s relevant to them as quickly and easily as possible. A personal login shouldn’t just give access to generic information, but should allow information to be tailored to the individual or organisation. E-mailing a PDF document is still a popular distribution method for reporting, but allowing each investor to also access a personalised webpage for tailored information brings opportunities to deliver added value and to build a relationship.
2. Differentiation
Whether you stand out for high quality products, a passionate approach or for a focus on risk management, your website should reflect that focus and differentiate you from competitors. The message should be strong and consistent throughout the website in order to build a persona that rings true with the experience of meeting up with business representatives offline. Allowing a look “behind the scenes” at the culture and work environment, imbues the company with a personality and helps to create a strong bond between you and the users.
With the bold caption: “Creativity. Experience.” and a brief history of themselves, Angelo Gordon & Co’s website conveys who they are and what they offer within seconds. Focusing on the creative approach to alternative investment strategies is the clear theme throughout their website. Where does your point of difference lie and what are the values that drive your business? The answer to these questions should be the foundation on which you build your website.
3. Institutional Quality: Infrastructure and Operations
Although many would claim to prefer a strong team as opposed to a star investor, the latter is always a favourite topic. Access to the fund manager is of great importance to any investor. Here, Web 2.0 offers a multitude of opportunities in form of video sharing. Instead of or in addition to the odd article in financial journals or speeches at conferences, the fund manager can communicate directly through the website. The main difference and benefit of this is your complete control of content and frequency, as you can record, upload and share as much as you see fit. While your star managers are the ones who promote the company at events and in the press, the website is a great place to build a profile of the team.
4. People
The trend of networking – offline and online – brings with it a movement towards the personal and approachable. Impersonal corporations and businesses are a dying breed and are being replaced by real people and real faces. For the hedge fund website, the importance of this is twofold. Firstly, it exudes a sense of security, openness and inspires trust. Secondly, it serves as an invitation for future employees. Many hedge funds have recognized this and already feature an extensive careers section on their website. Man Investments link to career and graduate opportunities, whereas Seilern Investment introduces its team through pictures and job descriptions. Again a great reference site is Goldman Sachs with very personal videos of staff at every stage of their career in the firm giving real insight into what a working day might bring.
5. Added Value
An ideal website delivers more than what’s required and demonstrates creativity, resourcefulness and opportunities for users to get involved. The larger hedge funds are already incorporating news feeds and articles onto their website. One of our favourite examples is Angelo Gordon’s “visual tour through the office”. With one click on their homepage, you can view an array of snapshots of their premises. This is impressive not only because the pictures are high quality and beautifully taken, but because it gives a unique insight into the working environment, gives a feel for the company and instils a sense of trust. Good content that’s updated on a regular basis, distributed pictures and videos, result in a higher SEO result. Again, this is beneficial in matters of recruitment as well as catering to the expectations of institutional investors.
Links for inspiration:
http://www.angelogordon.com/index.cfm
http://www2.goldmansachs.com/
http://www.seilerninvest.com/home.html
