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11 Compelling Reasons To Use A Small Fund Manager

BETTER CUSTOMER SERVICE:

“WHO HAS EVER EXPERIENCED BETTER SERVICE FROM A LARGE ORGANIZATION COMPARED
WITH A SMALL ONE?”**

Because investor assets are more important to a small manager, it is guaranteed that you will get better
service, better reporting, and more consistent attention from a small fund manager than a large asset
manager. The good small fund managers a meticulous about their monthly reports and financials and
generally very communicative with their investor partners.

MORE FLEXIBLE:

Regarding small AUM managers: "THEY ARE BETTER AT EXPLOITING NICHE OPPORTUNITIES,
ESPECIALLY IN NEW UNDER-DEVELOPED AND UNDER-RESEARCHED MARKETS, AND QUICK TO
IMPLEMENT INVESTMENT IDEAS. THEY ALSO TEND TO HAVE A GREATER ABILITY AT USING
NEW AND INNOVATIVE INVESTMENTS.”***

It has been our experience that small fund managers have more market experience and widely more efficient
due diligence and therefore can be more flexible in the approach to the widely variable aspects of hard-asset
investing.

NO CUMBERSOME DECISION MAKING PROCESS

“EMERGING MANAGERS TYPICALLY DISPLAY STRONG MOTIVATION, AND THE KNOWLEDGE
THAT THEY STAND TO BENEFIT FROM BEING AN OWNER OF THE BUSINESS."***

Small firms don't have as much internal politics to overcome. By not having to convince a large investment
committee with each member having their own set and different agenda, smaller managers can execute
investment programs more quickly and with greater efficiency. This fact alone allows them to take advantage
of opportunities uncovered by their research. We have found this to be exceptionally profitable in the world of
private deals where, once a deal is presented to us, our due diligence and decision-making process is
extremely short, allowing us to capture as much as a 10% discount on our purchase price, just by closing
quickly with CASH!

ILLIQUIDITY MEANS OPPORTUNITY:

“NEWER HEDGE FUNDS ARE ALMOST ALWAYS SET UP TO EXPLOIT PERCEIVED PRICING
INEFFICIENCIES IN ‘NEWLY POPULARIZED’, SMALLER MARKETS. HOWEVER, AS TIME PASSES
AND COMPETITION MAKES THESE SMALLER MARKETS MORE EFFICIENT, RETURNS ARE
ERODED. SOME EXTREMELY GOOD EARLY-STAGE TRACK RECORDS ATTEST TO THE FACT
THAT IT CAN STILL TAKE A CONSIDERABLE AMOUNT OF TIME (AGAIN, USUALLY MEASURED IN
YEARS RATHER THAN MONTHS) BEFORE SUCH INEFFICIENCIES DISAPPEAR. THIS GIVES THE
BEST EARLY-STAGE MANAGERS (IN A VARIETY OF DIFFERENT STRATEGIES) SOMETIMES

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