HFIN One Looks to Streamline Hedge Fund Due Diligence Process

Emerging Manager Monthly

Emerging Manager Monthly – July 1, 2014
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HFIN One has created a single platform to bring together hedge fund managers and investors to streamline the due diligence process.

The platform helps hedge funds maintain their marketing efforts in a single place while providing allocators with access managers and information.

"HFIN One was built on the belief that everyone could do more if they had better access to people, information and technology," said Eric Slaim, who founded the firm in 2009.

For emerging managers, the network helps them overcome the challenges of starting up and growing their businesses by connecting them to allocators interested in what they do and arming them with sales, marketing and client servicing technologies that can institutionalize their businesses and improve their efforts, Slaim said.

When signing up for HFIN One, managers create their company page that provides a destination for allocators to find them, learn about them and connect. The set up of the page involves selecting the strategies offered, communicating their respective edge, showcasing the team and creating access-controlled portals to secure and share sensitive information.

Slaim started investing in hedge funds in 2004 working for a $1 billion fund-of-funds before launching his own fund-of-funds and advising other hedge fund investors on an institutional basis. After six years of allocating capital to hedge funds and over 1,000 manager meetings, Slaim left his role to build HFIN One.

"I was an active user of technology and saw the needs of the industry were not being addressed. Hedge funds struggled with stability and growth. Allocators were investing too much time, energy and money chasing information that could be standardized and centralized in a way that creates value," Slaim said.

HFIN One is removing the data aggregation component for allocators, making it easier for them to receive information about managers - from news to filings, tweets, documents, data and performance.

One example is that the network eliminates the need for allocators to spend hours querying managers and parsing through the search engine results by enabling allocators to access information on a manager in a single click. It also offers a better alternative to Google Alerts by letting allocators receive information they want on the managers based on their preferences and in a consolidated e-mail.

"When hedge funds e-mail information to investors, they have no way to measure read rates or deliverability, know who is reading their information and who is not or how to follow up," Slaim said. He added that allocators are receiving e-mails from hundreds of managers and service providers, meaning that the data or messaging from any one sender gets diluted or lost in the shuffle.

The allocators on HFIN One are all accredited investors that invest in hedge funds. When allocators move into the network, they follow managers and request access to portals. Managers can instantly connect with and grow their network and launch portals to have more investors contact them.

To help certain institutional investors meet their mandates, the network now provides an option for managers to identify themselves as women- and/or minority-owned firms, allowing allocators to find and connect with hedge fund managers based on ownership structure.

The platform currently represents about $500 billion in assets between managers and allocators, Slaim said.

The network is free for hedge fund managers and investors. HFIN One currently offers several fee-based, premium services for hedge funds: HFIN Traffic, HFIN Cloud Docs, HFIN Creative and HFIN Hosting.

HFIN Traffic captures activity inside HFIN One. The service gives managers a level of oversight and business control to get more from their sales and marketing efforts and deliver better client service, Slaim said.

Managers can also utilize the HFIN Cloud Docs platform to send links instead of attachments, providing an additional layer of transparency, security and oversight through e-mail.

HFIN Creative, the design, development and branding arm of HFIN One, provides hedge funds assistance with their Web sites and marketing materials.

For managers looking to strengthen their Web site, HFIN One improves search engine performance, enhances design and usability, makes Web sites render across browsers and devices, among many other upgrades, through HFIN Hosting, a value- added outsourced webmaster and hosting service.

Hedge fund managers and investors can sign up for HFIN One at http://www.hfinone.com.