Hedge Funds Altering the Nature of Corporate Investor Relations

New research from Greenwich Associates suggests that US companies should be adjusting their investor relations strategies to respond to fundamental shifts in the composition and expectations of the US equity buy side – namely the growing influence of hedge funds. Hedge funds differ from other types of institutional investors in investment style, approach to due diligence, interactions with Wall Street, and expectations of portfolio companies. But hedge funds also can differ just as much from each other – a fact that increases the complexity of monitoring and managing the corporate shareholder base. “It’s no longer enough for corporate IR professionals to know who their shareholders are,” says Greenwich Associates consultant Jay Bennett. “They now have to know enough about the nature of each investor to understand what the shareholder wants – and what its ultimate intentions might be.”

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