The convergence of all parts of the investment management industry is something that I have been writing about and talking about for the last few years. I believe that within a few years, there will no longer be things called hedge funds, mutual funds and private equity funds, but rather just different types of funds. Some funds will go short, some will go long and short, others will just go long and another group will invest solely in illiquid investments. The time for this convergence is now, when many private equity firms, hedge fund firms and mutual fund firms are launching new products, exploring new strategies and developing new distribution channels. It is truly an exciting time to be involved with the asset management industry.
As an investor, however, it is important to pay attention to the fine print. Don’t be wowed by the marketing, of just getting the opportunity to invest in a new product by a well-known manager. Remember to perform your due diligence. You need to know how the money is managed. Ask questions and demand answers. If you don’t understand the answer, keep asking until you get one that makes sense. It is your money and you need to know what is happening to it at all times.
Operations for Alternatives — a new event and online community that I co-founded — is focused on this convergence. The event, which is taking place March 5-7 at PGA National in Palm Beach Gardens, is going to be a gathering of some great minds discussing how to create, launch and distribute new investment products.
There are still some tickets left — you can register by clicking here. I hope to see you there.
THINGS THAT DRIVE ME CRAZY:
The weather — I mean really, we are the winter that just will not end. The snow, the ice and the cold are just awful. Enough already…