Agecroft Partners was founded by Don Steinbrugge, who has 32 years of experience in the institutional investment management industry, including previously serving as the head of sales for one of the world's largest hedge funds and institutional investment management firms.
"Agecroft has changed the model of hedge fund third party marketing," says Steinbrugge (pictured). "Most third party marketing models are based on leveraging personal relationships and doing extensive entertaining. Ours has been to build a global brand with a reputation as an industry thought leader, strong institutional investment knowledge and representing very high quality manager.s”
Steinbrugge has been a prolific writer of industry thought pieces and white papers, having written or appeared in more than 500 articles in the last few years. Often asked to share his thoughts with the media on the hedge fund industry, he has also been a regular guest on Bloomberg News and CNBC and has spoken at more than 100 leading industry conferences since Agecroft's inception.
"This has helped us to attract some of the highest quality hedge fund managers to represent and has also allowed us to access many institutional investors that other third party marketers have difficulty accessing," states Steinbrugge, who adds:
In their latest article they predicted the top 10 trends in the hedge fund industry for 2016, which has been widely covered in the media: https://www.linkedin.com/pulse/top-10-hedge-fund-industry-trends-2016-don-a-steinbrugge-cfa?trk=pulse_spock-articles
Agecroft is highly selective of the firms it represents by utilising an institutional quality due diligence process in manager selection. This begins by leveraging its industry-leading reputation to attract high calibre managers requiring marketing support. Agecroft's success is that it analyses hedge funds based on its own internal selection factors that closely mirror those used by institutional investors. Unsurprisingly, manager selection is highly discerning.
"95 per cent of hedge funds can be screened pretty quickly. It's the remaining 5 per cent that take a lot of time to do deep due diligence," says Steinbrugge.
Once a new manager is added, Agecroft works to add value to its clients by focusing on the following three components:
• Quality of product
• Quality of message
• Distribution strategy
To be successful at raising assets, managers have to have a high quality product that ranks well across each of the selection factors that investors use.
In addition, a manager needs a concise linear message that clearly articulates what their differential advantage is across each of those selection factors.
"One of our main objectives is to ensure that the product is strong, and secondly that the marketing message is as strong as possible to enhance investors' perception of the fund.
"The third component of raising assets is the marketing strategy. Reaching out to a wide selection of investors and setting up qualified meetings. It also requires making sure that we have the right follow-up strategy in place for each prospect. Building momentum in asset growth is vital to successfully raising assets; because raising asset is not linear it is exponential, as the hedge fund's brand grows in the market place. I'd much rather represent a hedge fund that is going from USD75 million to USD175 million than one that has been at USD800 million for the last few years," says Steinbrugge.
