When we created CogentHedge in 2000, the crying need was for
a simple, accurate, unbiased and free research platform for hedge fund
managers and investors. That was what we built, and it really hasn't changed
since. It was a concept that resonated with the overall community and we took
the approach that "if it ain't broke, don't fix it".
Times change, and CogentHedge needs fixing. Managers are increasingly desperate to connect with qualified investors - and connections are increasing difficult to establish - and investors expect far more flexible tools than were available at the turn of the Millennium. To that end, CogentHedge will be developing a new platform with greater functionality than is currently available, that operates smoothly on mobile media, and that will offer managers and their agents far more feedback about interested potential investors while also establishing several mechanisms allowing efficient and effective capital raising.
Before we mortgage our future on CogentHedge2.0, we'd like some input from you. After all, if we do this correctly you - both our managers and investors - stand to benefit (although it also would be nice to pay the rent ...and yes, we can't afford to continue our 14-year old practice of giving away something for nothing).
We intend to expand capabilities within the following areas:
Granted, this is our bread-and-butter so the development of more powerful analytics is Job #1 for us. We will be introducing new performance metrics such as the Omega ratio (a measure of the likelihood of achieving an expected return which has been requested by a number of our users), n-tile analysis of fund performance, currency conversion and dynamic (time-sensitive) performance ratio benchmarks. After all, it’s only basic statistics.
Different managers report different characteristics:
• Top portfolio holdings
• Sector exposures
• Geographic allocation
• Style allocation
• Sector attribution
• Style attribution
• Comparative Risk/Return graphs
We are working to create a structure that accepts much more discretionary information from the manager and then presents it in a meaningful manner.
Flexibility in the selection of presented data and report format will be vastly expanded. Modern technology makes this upgrade an obvious choice.
Technology to track investors' interests will allow for far greater market intelligence. This can be used proactively by managers and their agents, and can provide market feedback to our registered users.
Between The JOBS Act in the USA, the commencement of AIFMD in the European Union and the Swiss FINMA's rules regarding CISA distribution in or from Switzerland, the world is rapidly becoming more complicated. To meet these challenges, the CogentHedge platform will track applicable jurisdictions of both investors and funds, and will be able to control information access accordingly. One benefit of this capability is that an investor will be required to specifically request access to individual funds that would otherwise be blocked - thereby satisfying a key tenet of passive reverse solicitation under the European framework.
We are creating a Meet the Manager functionality into CogentHedge2.0 that will allow the Manager (or its agent) to announce upcoming events and then pick and choose from investors' requests to attend based on detailed feedback regarding interest and purchase intent.
What new features do you want to see?
Social Media: The tubes of the Internet seem to be overrun by social media extensions for everything. Hedge fund investing is no exception. Do you think an informal discussion forum is appropriate for alternative investments? I don't, but I could be persuaded to change my view. After all, former investment industry pros with far more monetary success than I are now involved in these schemes.
Synthetic Index Products: If you are willing to set up an SMA for us with high liquidity and low fees, we would be happy to follow the advice of the marketing consultants and start selling these market proxies. It is a very lucrative business for the index operator although quite risky for the investment manager.
Multi-advisor Strategy Trackers: Introducing the initial Wizards of Wall Street to mainstream investors was first pioneered by a multi-series/multi-manager hedge fund product in the early 2000's. It didn't work out particularly well for the promoter or investors back then, but managers now may be more willing to cede their exclusivity, and (again) liquidity, for a sizeable capital commitment. Does this model make sense to you?
Let us know what you would like to see in the new CogentHedge2.0.
We look forward to hearing from you.
Senior Managing Member
Cogent Investment Research LLC
w. +1 609-642-6979
c. +1 609-462-7001