What Does An Investment Management Company Do?

1
What Does An Investment Management Company Do?
2
(No Transcript)
3

• Investment management company generally have a
  range of clients for whom they make investment
  decisions. They will put their clients' money
  into virtually all types of assets, such as
  stocks, bonds, real estate, and more. Investment
  management firms often work within the limits set
  by clients to help them achieve their financial
  goals.Companies will employ a number of
  professionals who specialize in fields such as
  finance and management, who carefully analyze and
  select assets to include in client portfolios,
  and who monitor their performance on a regular
  basis. In addition, there are alternative
  investment management companies that invest
  primarily in venture capital firms, private
  equity firms, and hedge funds for their clients.

4
(No Transcript)
5

• Why trust these companies with your funds?These
  companies will have finance and management
  professionals evaluate potential investments and
  decide to include those that promise returns.
  Investment management company are likely to have
  salespeople whose main job is to find new clients
  for them. In addition, there will be attorneys
  who will ensure that companies operate within the
  laws that control their industry. In addition,
  some specialized employees stay on top of many
  administrative tasks, such as monitoring all
  transactions and making sure they are recorded
  correctly.
• Alternative investment management companies
  generally raise money from a diverse group of
  investors. They then take this money and
  investing in various alternative investment
  classes, such as venture capital firms, hedge
  funds, and private equity firms.

6
(No Transcript)
7

• These companies will have their own investment
  styles, and alternative investment management
  companies will choose to invest in those that
  promise success. Furthermore, these companies
  operate in a similar way to the management
  companies themselves.
• How do they work?Venture capital firms typically
  pool funds from numerous investors, including
  wealthy private individuals and institutions such
  as college funds and pension funds. Companies
  make investment decisions on behalf of these
  clients. The capital that venture firms have
  pooled will be used primarily to fund new and
  high-growth companies. These companies are very
  risky, but when they are successful, investors
  who have their money managed by these companies
  will be handsomely rewarded.

8
(No Transcript)
9

• Hedge funds are more or fewer partnerships, and
  there is the general partner who makes the
  day-to-day investment decisions. The general
  partner is usually a company run by what are
  known as hedge fund managers. Hedge funds are
  generally exclusive and mostly accept investors
  who are wealthy. These funds invest, more or
  less, in all asset classes, such as stocks,
  commodities, and various financial products.
  Additionally, hedge funds are often known for
  taking significant amounts of risk in their
  investment strategies.
• Private equity firms primarily focus on investing
  in private companies that are preparing to list
  on a stock exchange. They also buy publicly
  traded companies and take them private,
  restructure them, rebuild them to be profitable
  in the long run, and sell them at a profit.

10
(No Transcript)
11

• In addition, there is an investment management
  company that only provides consulting services
  and does not handle the actual portfolio
  management or asset purchase and sale
  transactions for clients. All management
  companies will work for fees that vary from
  company to company.
•  
• Private equity firms primarily focus on investing
  in private companies that are preparing to list
  on a stock exchange. They also buy publicly
  traded companies and take them private,
  restructure them, rebuild them to be profitable
  in the long run, and sell them at a profit. In
  addition, there is an investment management
  company that only provides consulting services
  and does not handle the actual portfolio
  management or asset purchase and sale
  transactions for clients. All management
  companies will work for fees that vary from
  company to company.

12
(No Transcript)