Hedge fund marketers face obstacles in U.S.

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AllAboutAlpha.com noted recently that, despite the conventional wisdom, the U.S. actually has one of the more restrictive regulatory regimes of hedge funds compared to the likes of Australia, China, Japan and other nations. As of now, there is no likely relief for marketers, not that the industry is suffering on the capital raising front. The site notes an article by some hedge fund professionals that makes the following recommendations:

  • Avoid speaking to the media about your funds--even if you're not actively selling, but just "conditioning the market."
  • Avoid "print, radio and television advertisements or solicitations regarding funding or investment matters."
  • When giving presentations, "address the risks associated with hedge funds in general as well as the specific risks associated with the hedge fund being offered."
  • When your fund has a great year, make sure you "disclose the reasons for extraordinary performance..."
  • No "mass mailings" except to "individual investors, or a discrete group of accredited investors."

For more:
- here's the article

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