Details
Category: Marketing

FAQs

What exactly does a third Party marketer do?

Provides outsourced Sales and Marketing functions to professional investment managers. We also act as a conduit (matchmaker) making introductions between investors and investment opportunities.

 

What is the difference between a Solicitor and a Third Party Marketer?

As defined by the Investment Advisors Act of 1940 a solicitor is any person who, directly or indirectly, solicits any client for, or refers any client to, an investment adviser. A more modern definition is that a solicitor casually refers business to a manager during the course of their normal employment. A Third Party Marketer, on the other hand, is an experienced Sales and Marketing professional with an established network of contacts that formally solicits business for a money manager through targeted marketing campaigns. TPM’s also aid in the development of marketing materials, branding, consultant relations, and represents the firm at industry conferences and social events.

 

How is a Third Party marketer compensated for their efforts?

There are a number of factors that come into play and determine a fair compensation plan. In most cases it is a combination of a monthly retainer and a success fee based on percentage of assets raised. In addition, the manager covers all expenses incurred while pursuing new business for their firm.

 

Why don’t managers just market themselves?

The skill set for managing an investment portfolio is very different than the skill set for a sales and marketing professional. A portfolio manager’s time is best spent in the office managing the portfolio not hopping around the country chasing down leads and prospective clients. Many investment managers have also made the business decision that it makes more financial sense for them to outsource their sales and marketing functions so they can focus on their core competencies.

 

Are you licensed for what you do?

Yes, we are registered as an Investment Advisor in the State of California and we additionally hold security licenses such as the Series 7, 24, 63 & 65, or 66. The firm is also registered as a municipal advisor with the MSRB and also as a lobbyist with the State of California.

 

What does Alpha Strategies look for in an Investment manager?

We look for several things in managers we want to work with such as:

  • A unique or compelling story 
  • Pedigree of management / historical success 
  • Consistent Investment Process and philosophy 
  • Consistent Alpha generation 
  • Favorable Upside/Downside Capture Ratio 
  • Discipline / lack of style drift 
  • Operational capabilities / Capacity constraints 
  • Institutional Quality 
  • Compatibility with management team
 

Why is it important to find best in class money managers, why don’t I just buy an index fund or ETF?

We believe that there is a scarcity of talent and intellect in this world. If you are satisfied with average market returns then indexing is probably a good choice for you. We know that there are talented managers out there that have consistently outperformed their benchmarks and with less risk. We seek to find these Alpha producing managers and help them to gain visibility in the marketplace. Our value added is the ability to identify these undiscovered managers and share them with institutional investors.