WEST PALM BEACH, FL (www.hedgeco.net) – An executive manager at Tremont Capital Management has warned that hedge funds are going after top clients of mutual fund firms as they expand theiroperations. Robert Schulman, CEO of Tremont Capital Management which is a subsidiary of mutual fund firm, Oppenheimer Funds said hedge fund companies are going after their top clients. He also saidhedge funds have a historic opportunity to use their excellent distribution capabilities in advancing their interests.
According to Schulman, Tremont Capital Management has about 2,000 ultra high net worth clients, and all of those clients own mutual funds as well. Schulman suggests that asset managers should do a better job to safeguard their databases through leveraging their excellent distribution capabilities, to get hedge funds into the investment portfolios of their clients.
Unless mutual fund companies achieve such goal, Schulman said they will likely have to settle with offering their services repeatedly to a dwindling number of investors, while at the same time hedge funds would continue to woo some of their best clients according to him. Schulman said, “Hedge funds are competing with you for your very best clients, don’t relegate yourself to the lower end of the market.”
Mutual fund companies have been trying to market hedge funds under the same mutual fund umbrella. Such plan has drawn criticism from hedge fund market participants, many of whom believe such idea has inherently some conflict of interests involved. Many traditional assets managers have also established their hedge fund management business in a bid to attract some of the lucrative business of hedge funds.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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