As an investor, you want to feel comfortable when you deal with "Investor Relations Hedge Fund". The people who work in that department ought to want to make you feel comfortable, too. After all, it is your wealth their fund manages!
This article looks at what one should generally expect when interacting with a hedge fund's Investor Relations Department.
Who Invests in Hedge Funds?
In case you are reading this article as part of your "first go-round" with a hedge fund, that means the Investor Relations Hedge Fund Department contacted you about joining their fund. Essentially, they have made a sales call or sent you a sales letter with a prospectus.
You should feel honored! Receiving the sales contact means the hedge fund that reached out to you considers you an experienced and sophisticated investor.
Hedge funds are not openly for sale to the general public. People who already have wealth in other investment vehicles are the people who invest in hedge funds.
Who Does an Investor Relations Hedge Fund Department Serve?
Investor Relations at a reputable hedge fund should always put the investor first. Be sure to do your due diligence before investing in any hedge fund that approaches you. Find out what other people have to say about that particular fund.
Your dealings with a fund and its Investor Relations employees will not be pleasant if that fund's corporate culture sanctions putting any other entity's needs before yours. Be diligent!
What Does an Investor Relations Hedge Fund Department Do for Investors?
When you receive an offer to invest in a hedge fund, that falls under the category of "investor relations". If you call your fund's management firm with a question, the people responsible for investor relations at the fund will ultimately answer the call. Alas, if the fund takes a financial hit, it will be Investor Relations' responsibility to reach out to you with the bad news.
Do all Hedge Funds Have Investor Relations Departments?
Investor relations hedge fund is the norm. A given hedge fund may not necessarily have a department called "Investor Relations Hedge Fund Department", but all hedge funds have employees fulfilling roles "related" to investor relations.
Is a Hedge Fund Right for You?
Hedge funds are expressly offered only to people who are experienced with investing. No hedge fund will ever be marketed to the general public. Doing so would lead to regulatory issues. Funds like these exist to avoid the regulations put on mutual funds and private equity funds.
Until you have plenty of investment experience and are invested in other types of funds, you will probably never be approached to participate in a firm's hedge fund. If you have been approached, only you can decide whether a given hedge fund is in tune with your investment risk profile.
Any hedge fund that contacts you should provide you with a prospectus. Examine its contents as thoroughly as you would the details of any prospective investment and make your own call.
May all your investments reap handsome returns!
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