HedgeFundBlogger.com Daily Newsletter by Richard Wilson

HedgeFundBlogger.com Daily Newsletter by Richard Wilson

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Defining Your Investor Avatar To Raise More Capital

Posted: 18 May 2011 05:54 AM PDT

Raise More Capital With Your Investor Avatar

Investor Avatar Definition:  An investor avatar is a well defined picture of the exact type of investor that your fund is targeting to raise capital from.

It is critical that your capital raising efforts and marketing materials are crafted to speak directly and powerfully to a single type of investor. If your investment fund is ideal for wealth management firms to invest in than it is important that your PowerPoint presentation, newsletters, conference calls, and educational marketing materials must be customized for that marketplace.  If you haven't already, check out my video on persuasive writing for capital raising and why it is so important here: http://richard-wilson.blogspot.com/2010/01/why-bad-copywriting-can-kill-your.html

Investors want you to have a well defined avatar in mind while raising capital because you waste less of their time when you do.  By being exclusively focused on one or two types of investors you will ensure that you have considered their needs, challenges, and other choices in the marketplace. 

Take a few minutes right now and think about which 1-2 types of investors you are focusing on primarily. Now think about what is absolutely unique about that investor, what is their history in investing in your type of investment fund?

What risks are they considering while looking to invest in your fund?

Why would they not invest?

How educated are they about your type of fund and asset class? 

Thinking about these questions as a team can help upgrade your marketing materials and approach to capital raising.  This is something that we cover in-depth at our full day live workshops that we hold several times a year.  

Hope to see you at one of these workshops in person soon, take care.

Related to: Defining Your Investor Avatar

Tags: Hedge Fund Investor Avatar, Investor Avatar, Creating an Investor Avatar, How to Create your Capital Raising Avatar, Capital Raising Avatars

John Paulson Hewlett-Packard

Posted: 17 May 2011 10:47 PM PDT

John Paulson Hewlett-Packard

John Paulson Buys $1 Billion in Shares of Hewlett-Packard

Hedge fund manager John Paulson has made a big investment in Hewlett-Packard Co. The hedge fund titan who made a name for himself by betting against the housing market before the financial crisis has bought a $1 billion stake in HP. This purchase amounted to about 25 million shares of the company's stock.
Paulson bought 25 million shares in Hewlett-Packard, valued at about $1 billion, according to a regulatory filing yesterday. The New York-based fund added 17.3 million shares of Transocean, lifting its stake to 7.7 percent and making Paulson the largest holder of the Vernier, Switzerland-based offshore driller.

The hedge fund has said it expects to make money in the next two years with the stocks of companies going through bankruptcy, restructuring or reorganization. Transocean, the owner and operator of the Deepwater Horizon drilling rig that exploded a year ago, was sued by BP Plc last month for billions of dollars in damages related to the oil spill. Hewlett-Packard is pushing deeper into software to try to reverse a 22 percent drop in its shares in the past year.

Leo Apotheker, who took over as Hewlett-Packard's chief executive officer Nov. 1, outlined his strategy for the first time on March 14. The company is starting a cloud-computing service that will let developers create applications for consumers and businesses that run on HP servers, Apotheker said at the time. Source

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Tags: John Paulson Hewlett-Packard, John Paulson Hewlett-Packard Shares, John Paulson Invests in Hewlett-Packard, John Paulson Buys Hewlett-Packard Shares, John Paulson Hewlett-Packard Co. John Paulson Co. Hewlett-Packard

Hedge Funds Sell Gold

Posted: 17 May 2011 10:22 PM PDT

Hedge Funds Sell Gold

Hedge Funds, Soros Sell Off Gold Holdings

Hedge funds and investor George Soros's fund combined to push down the price of gold. The funds recently disclosed that they had cut their gold positions.  Many hedge funds have been riding the wave of high gold prices through investments in gold trusts.
Gold for May delivery settled down $10.60, or 0.7%, at $1,479.80 a troy ounce on the Comex division of the New York Mercantile Exchange. The most actively traded gold contract, for June delivery, ended down $10.60, or 0.7%, at $1,480.00 a troy ounce.

Soros Fund Management said late Monday in a securities filing that it sold 99% of its stake, or 4.7 million shares, in exchange-traded fund SPDR Gold Trust (GLD) in the first quarter.

The shares sold were worth $680 million based on Monday's prices. However, gold prices averaged slightly less in the first quarter, so Soros's take could have been smaller.

As of March 31, Soros held just 49,400 shares valued at $6.9 million of the fund, which is backed by physical gold.

The news sapped confidence among gold investors because Soros had led the charge on gold over the past two years, aggressively purchasing the precious metal even after calling it "the ultimate asset bubble." Source

Related to: Hedge Funds Sell Gold

Tags: Hedge Funds Sell Gold, Hedge Funds Selling Gold, Hedge Funds Gold, Hedge Funds Sell Gold Position, Hedge Funds Investing in Gold

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