Can hedge funds market themselves?
Can hedge funds market themselves?
The final rules, announced in July, lifted the 80-year ban on “general solicitation.” Hedge funds that agree to operate under a new part of the law will be able to advertise, sponsor events, provide more information on their Websites, and generally market themselves, as well as allow their managers to speak more freely …
Do hedge funds have marketing?
So any benefits that effective market communication might provide for them are very likely to result in incremental asset growth. Additionally, because hedge funds do not currently depend on marketing for survival, they can act in a deliberate, strategic manner.
How do you promote a hedge fund?
Most effective ways to promote a hedge fund
- find the most reliable publications addressed to the investment sector and present the investment strategy;
- participate in conferences and networking events related to the investment industry;
Why are hedge funds not allowed to advertise?
Prior to September 2013, hedge funds were not permitted to advertise. The restriction was intended to prevent funds from touting potentially fraudulent offers or marketing their services to ineligible or inappropriate investors. This change creates many new opportunities for hedge fund managers and for their investors.
How much do hedge funds spend on marketing?
However, it should not be surprising that 94\% of managers with less than $100m AUM are actively marketing their fund to prospective investors. Additionally, those managers were spending an average of 19\% of their fees revenue on marketing – up from an average of 11\% for those managing over $100m AUM.
Are hedge funds good for the economy?
In short, a few studies provide evidence that hedge funds caused the financial crisis. Although some studies suggest that hedge funds can manipulate stock prices, the academic literature generally finds that hedge funds help financial markets by providing liquidity and improving price efficiency.