Hedge Fund Advertising Strategies Uplifted by SEC

We told you so..(8 months ago!)..
In connection with last year's passing of the JOBS Act, today the SEC is expected to officially approve a new rule that would ease 80 years of advertising restrictions on ways that hedge funds and other companies seeking to raise money through private offerings.
 


The rule would ease 80 years of advertising restrictions that help ensure small investors aren’t lured into taking inappropriate risks. Under the new rule, startups and other small companies would also be able to use advertising to raise unlimited amounts of money.

“It changes the whole paradigm of who you can talk to,” said Brian J. Lane, a former division director at the SEC and now a partner at Gibson, Dunn & Crutcher LLP in Washington. “Hedge funds will benefit because they have the most restrictions on their ability to communicate more broadly about different funds coming to market.”

The rule affects how companies raise money through private offerings, which are exempt from requirements to publicly report financial statements. Private offers are restricted to wealthy investors, who are considered better positioned to understand the risks of investing with less information.

For the full story from Bloomberg LP, please click here

What's Next for Hedge Funds? Marcom / Advertising to Enhance Alpha

While keeping our fingers on the pulse i.e. new rules that will enable hedge funds and other investment vehicles to leverage marcom and advertising schemes in the course of soliciting investors and enhance their brands, latest self-promo blog posting from HedgeCo,net, a 3rd party marketing platform, makes for an interesting read:

The pending regulations connected to the JOBS Act is one that has advertising firms drooling in anticipation of getting a slice of what could prove to be tens of millions of dollars in fees from notoriously big-spending Alpha types from the financial services world.

If you happen to be one of those that believe spending more makes you more recognized, you're in luck: there's no shortage of vendors that will help you part with your (actually, your investor's) money.

Words of wisdom for deep-pocketed, fast-action hedge fund managers from one of our favorite gurus--and one that works with many alpha-types in the financial world: be careful what you wish for.

Mad Men and Hedge Fund Marketing: Let The Games Begin

Courtesy of Huffington Post column re Hedge Funds Can Now Engage Mad Men: 
Mad Men, the wildly popular AMC TV show about the fictional 1960s advertising agency Sterling Cooper Draper Pryce, is set in a haze of cigarette smoke, alcohol and chronically inappropriate behavior. Hedge funds, dating back to a similar era, have remained equally hazy to most Americans, as well as often being equally off-center in their behavior.

Today, as a result of the JOBS Act (Jump-Start Our Business Start-ups), hedge funds are now allowed to advertise their products through the mass market. And, to further confuse consumers, hedge funds come in all flavors, all shapes and sizes. Speaking of them as a single asset class is akin to going to the zoo and telling the zookeeper, "I'm here to see the animal."

We love creative marketing..and for you hedgies looking to hedge with a boutique outfit that walks, talks and knows Wall Street inside and out, here's a short selection of OUR recent favorite ads