Winner: Best investor relations team

With 23 years in the business, Gems Advisors is one of the most experienced fund of hedge funds (FoHF) managers around. Since being founded in 1987, the company has accrued around $2.3 billion from a broad investor base that includes private banks and brokers (30%), other asset managers (22%) and pension funds (22%) as well as investments from insurance companies (2%) and private investors (14%).

As one of the first asset managers to make hedge funds the primary expression of its investment views, Gems believes its experience gives it an edge in a relatively young industry. It benefits from an experienced team that has worked together for many years.

The emphasis at Gems is on research rather than marketing with 29 of its 56 staff involved in investment work. The core team has worked together for over 15 years with no senior departures. This length of exposure to developments in the industry has taught Gems the value of keeping clients as up to date as possible through good times and bad.

“Investor relations is always important, even at the best of times. It is important to ensure that our products remain relevant to investors, to articulate the case for our offerings and to establish trust,” explains chief executive Miguel Abadi.

“This trust is important because good times can be followed by more challenging periods. We know that many clients have invested with Gems and remained invested in our funds not just because of performance but because they have been able to understand the effort and the infrastructure that goes into producing this performance,” he adds.

Abadi says the key is to view clients as partners, not customers. This is an approach that stems from the company’s roots in managing assets for the friends and family of the two founders of the organisation, Abadi and David Goldfarb.

Abadi admits it is not always easy but it is not optional. “Gems’ investor relations team deals openly and clearly with sometimes difficult questions. The team’s credibility is based on investors’ recognition of this transparency which goes well beyond the industry norm, as well as its technical expertise,” he explains.

The difficult times that have prevailed since 2007 have made things even more demanding and Gems has adapted by producing increasingly detailed and informative reports, making sure clients know senior investor relations staff are available to speak 24/7. They will also arrange face-to-face meeting if clients request them.

Ultimately, ramping up investor relations to cope has made the process stronger, Abadi says: “The result has been the maintenance of open channels of communication that give investors a clear idea of our views and intentions.”

Gems’ investor relations team comprises a multi-lingual and multi-cultural staff in locations including the UK, Singapore, Brazil, Argentina and Switzerland. Staff is kept closely informed of any developments within Gems’ funds and the company’s views.

The company’s largest fund is the Gems Low Volatility Portfolio, a diversified fund of hedge funds opened in 1995 with around $1.2 billion of assets under management.

From left: Rob Mannix, publisher, Credit, Michel Ghatan and Miguel Abadi, Gems Advisors