"Four things CIOs care about: asset allocation, portfolio construction, manager selection, and risk management." Kip McDaniel is the Chief Content Officer and Editorial Director at Institutional Investor, from capital allocators podcast.
The comment from Kip McDaniel provides a roadmap for what any hedge fund needs to address when marketing to a pension or any client. It is not about you, the manager, but the investor.
1. How does this investment fit within the asset allocation framework of the pension? Why does it matter?
2. How should this investment be delivered to the client? How does it fit within the overall portfolio construction and use capital efficiently?
3. What is your edge versus other managers and how can you generate confidence that this edge can be achieved?
4. What will be done by your fund to protect the money allocated to you? How will your investment help protect the overall portfolio?
The questions are relatively simple, but the answers require a lot of thought if the manager wants to truly be a top service provider.
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