Why assign a 3rd- party marketer?
From time to time, we hear that some investors do not "like to deal with" third party marketers. And, while we understand that "third-party marketing" is a common description of what we do, we believe that it does not begin to explain who we are.
We provide comprehensive marketing and client service for our managers. We focus exclusively on bringing new managers to market. From questionnaires to data provision to marketing materials creation, we specialize on client administration and marketing communication so that our managers don't have to, particularly in the early stages of their business-building.
We are experienced in the hedge fund and asset management industries. Our partners average thirty years each in the global investment markets. Boomerang is composed of a group of senior industry leaders with experience working at most of the major investment banks and who share both an entrepreneur's passion and a specialist's expertise for the investment business.
Even if we are engaged as a marketer for our hedge fund managers, we are also an advocate for our investors. Our reputation is everything to us. Every time we add our name to that of a new manager we put not only our company on the line, but also the individual reputations of each member of the Boomerang team.
Boomerang is not afraid to bring new and emerging hedge fund strategies to market. Jack Welch has often recommended "making your back office someone else's front office." Simply, this means you should focus completely on your core competency and find others to do what you don't want or aren't ready – financially, organizationally – to take on. New hedge funds have more than enough things to do and costs to cover that we think engaging an experienced, variable-cost provider of client services is one of the smartest initial investments you're able to make.
How many managers to you work with?
Over time we've represented as many as 5-6 managers at one time, but the number is typically closer to three. Our capacity depends on a variety of internal and external factors, including the type and maturity of the strategies we're representing and the state of the broader markets, for example.
How do you find managers to work with?
Since we started Boomerang in 2001, over 2,000 managers have contacted us to help with their marketing efforts. We have never made any “outgoing calls” to look for managers. These inquiries are all the product of referrals and they are based upon our reputation and our industry contacts and associations.
Why do you require "exclusive" assignments?
We are the exclusive marketing partner for our managers. Our business is predicated on doing just one thing, but doing it extremely well. We build close and long-term relationships with emerging hedge fund managers, based on mutual trust and frequent contact. In every instance, we decline assignments where we would just be "one among many." We never represent overlapping strategies. Our partnership with new managers is comprehensive, so we cannot ask for exclusivity without offering it in return. We are extremely selective choosing among managers to represent, we never offer more than a single manager per strategy and, we are compensated on all of the capital we raise.
What does Boomerang look for in a manager?
Our process for identifying new hedge fund managers is grounded in our reputation for integrity and expertise. We have screened numerous prospective managers over the past decade and have introduced, on average, just one or two managers each year ever since. Even though we are engaged as a capital raiser for our hedge fund managers, we are also an advocate for our investors. Unsurprisingly, we are attracted towards managers who see the world as we do.
We focus on managers motivated more by performance in their specific area of expertise
We search for strategies with a sound thesis and a persistent source of expected alpha
We value transparency and conduct extensive due diligence into the investment process, operational procedures and key personnel
We want to act like venture capitalists to our managers, providing insights into business strategy and product development
We aim to be a manager's exclusive representative and avoid overlapping or concurrent assignments
We need managers who are willing to travel during the capital raising process