Fidelity's Levitt, for example, says his firm is not participating in InvestorForce, because it already has relationships with many of the big plans that use the Search Exchange database. More fundamentally, Summit's Holmes wonders how InvestorForce is going to persuade money managers to pay to be included in Search Exchange when, to begin with, their data are needed to make the database credible with plan sponsors and consultants. Plan sponsors prospecting for managers, however, are keen to access whatever free resources they can get their hands on. Smaller investment firms, in particular, look upon such services as another way to achieve recognition. Internet searches are not for everyone.
Many large plans believe their search processes are sufficiently refined as they now stand.
InvestorForce also will be building comparisons with the entire universe of hedge funds, says Rick Hayes, senior principal investment officer in CalPERS' alternative investments group.