How to Market your Hedge Fund under new SEC Rules
What impact will the new SEC rules on advertising have on investors and the overall hedge fund industry?
From an operational perspective, most hedge funds are now at a marketing disadvantage since they have not developed an online presence. An analysis of more than 3,100 funds registered with the SEC revealed that fewer than one in 20 of those funds had developed a website, according to the white paper, How to Market your Fund under the New SEC Rules. Imagine any service-sector business without a website, and you can see why hedge funds, VCs and private equity groups all face an uphill marketing battle in this e-commerce world where a prominent online presence leads to consumers.
Marketing a fund to investors is drastically different than marketing a product to the public. It requires content marketing, credibility for the fund, targeted marketing to investors, a prominent online presence and a media outreach to stand out from others.
Credibility must be established from the start before the media will even consider putting your portfolio manager on TV or quoting him as a financial expert. He may manage a $100 million portfolio, but the media is not going to take his word for it without seeing evidence of his expertise. This is why it’s so crucial for all funds to establish credibility now with a strong online presence before the new proposed SEC rules on advertising go into effect.
Mark Macias is a former Executive Producer with WNBC and Senior Producer with WCBS. He’s also the author of the communications book, Beat the Press: Your Guide to Managing the Media. Macias now consults small and large businesses on how to get publicity. You can read more on his firm at MaciasPR or MarketYourFund.com