How are you different?

There are an estimated 10,000 hedge funds out there. Perhaps more. And for most -performance has been lousy the past few years.
Each one of these funds has a strategy, a model and a pitch book. Each thinks it’s strategy or edge is unique. It’s usually not.
With subpar performance, fee compression and increasing difficulty raising AUM (even for established players) the industry is heading for a major washout. The alternatives space is segmented into the true alpha generators – those who consistently generate superior returns year in and year out – and asset gatherers who make a living off management fees. The latter are destined for extinction.
Every fund manager, especially emerging managers struggling to get off the ground, needs to answer the following questions:
How are you different?
What’s your edge?
How does your fund differentiate itself in a very crowded space? Think about what makes you truly stand out from others. A deep and truthful self-evaluation is a good first step in the right direction. Is your investment strategy true to your core expertise or is your pitch promising investors what they want to hear?
What is your expertise? How robust is your risk-management? How do you research and analyze opportunities? How well do you manage risk? How authentic and disciplined are you? Who is your ideal, targeted group of investors? How are you marketing yourself? Would you truly bet your entire net worth on your own strategy?
Be honest with yourself, ask the tough questions and shake out the truths. If needed, seek the help of a coach/mentor as a sounding board and thinking partner.
The alternatives industry has gotten very, very crowded with fund managers fiercely competing for AUM. Unless one can truly differentiate and deliver performance, the probability of sustained success is between slim and none.
Go! Demonstrate how you’re different.
The author, a former derivatives trader, is the founder of Chopra Coaching. He specializes in coaching investment professionals, senior executives and entrepreneurs. Learn more about him at www.chopracoaching.com

Let’s work together to achieve the best you.

About Rajan Chopra
As a strategic thinker with a curious mind, I've coached, mentored and trained investment pros from entry level through senior management, and consulted business leaders as well as ordinary people who went on to do extraordinary things.
© 2019 Chopra Coaching All rights reserved. Design by Chevaun.
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Connect With Me
6101 Aqua Avenue Suite 301
Miami Beach, FL 33141
Latest Blog Articles
Macro Investing Views – 2018
Leadership Lesson: Gandhi Was a Disruptor
Coaches Can Take Take Traders to Next Level
About Rajan Chopra
As a strategic thinker with a curious mind, I've coached, mentored and trained investment pros from entry level through senior management, and consulted business leaders as well as ordinary people who went on to do extraordinary things.
Connect With Me
6101 Aqua Avenue Suite 301
Miami Beach, FL 33141
© 2019 Chopra Coaching All rights reserved. Design by Chevaun.