If you are reading this article, you are either here to learn more about hedge fund leads or you are looking to purchase hedge fund leads. Well, you are in luck because not only are we going to learn about these leads, but we also specialize in accredited investor leads!
What is a hedge fund?
A hedge fund is an investment strategy that utilizes many different techniques, including long positions, short positions, options, and leverage. The goal of a hedge fund is typically to make the returns of the underlying investments greater than those of the market.
What are hedge fund leads?
Hedge fund leads are essentially companies that receive hedge funds’ money on a recurring basis. These types of companies have typically raised capital from investors that require returns in the short term to more than 50% ROI over an extended period of time. Hedge fund leads are known for their investment strategies and their ability to generate significant returns on capital. However, we do not recommend going into business with a start-up hedge fund lead as these companies are usually focused on one particular strategy or industry and sometimes may not have enough liquidity to sustain profitable operations (meaning trading).
Why should you purchase hedge fund leads?
Hedge funds’ profits are heavily dependent upon the productivity, profitability, activity and growth rate of their investment vehicles. The returns from the investment portfolios owned by hedge funds can be derived from several sources, with the most important parts of a hedge fund’s return being:
- Investment Management Fees: These are fees that are paid by the hedge fund to its investment managers for managing their portfolios. Managers usually receive 2%-3% of assets under management, although there may be higher fees for multiple investors. Factoring in risk and other factors, this can translate into 20%-40% return on capital over 1-2 years.
- Gains on Investments: This is a major source of income for hedge funds. Most hedge funds have at least 125-150 investments, preferably 200+. This means that the investment managers of these hedge funds are constantly investing their clients’ money into different companies and industries.
- Interest Income: This is one of the least significant sources of income for hedge funds, but it is still significant enough to count. Interest income comes from the leverage in most hedge funds and is a result of high-risk/high-return investments. It may not be much, but it adds up quickly!
Note: Hedge fund leads have a limited time frame with their clients. If they are not generating returns or interest income in a short period of time, they begin to lose funding very quickly.
If you would like to learn more about all of our various lead options, please contact us!