A growing trend in the hedge fund industry is the use of expert networks and independent hedge fund research by hedge funds. I have discussed the use of independent hedge fund research in the past and these expert networks are used by hedge funds for the same purpose, to give them more color on recent market/industry events and hopefully provide an information advantage over their competitors. Expert networks can consist of 25 to 1,000+ niche experts who are consultants, operational actors working in all types of industries or well connected leaders with valuable knowledge, insight, experience and information that could be valuable and a unique addition to the internal resources that a hedge fund might have access to.

I am writing this article because last month I received a few emails asking for examples of hedge fund research firms, as a few people were confused on the difference between hedge fund research and hedge fund due diligence. One hedge fund research group I have recently connected with through the Hedge Fund Group (HFG) is based in Paris and offers a European based expert network, the name of this firm is TGR Research. They connect hedge fund managers of all types to experts based in Europe and help arrange telephone interviews, face-to-face meetings or seminars that might help a hedge fund make a more well-informed investment decision. For example, if a hedge fund manager is running an event-driven portfolio and is interested to learn more about the EDF/Iberdrola or Air France/Alitalia potential deals,they could then contact TGR and connect with a few industry experts in France, Spain or Itlay who could quickly provide them with current insight that could be not found in the news or through other online resources or paid research databases. Here are some expert network examples which show exactly how a hedge fund might use this type of service.