New doors for hedge funds open; SEC lifts 80-year old advertising ban
After many months of fits and starts, on Wednesday, the SEC voted 4-1 to lift the 80-year ban on hedge funds’ ability to engage in general solicitation to the public.
15 July 2013
After many months of fits and starts, on Wednesday, the SEC voted 4-1 to lift the 80-year ban on hedge funds’ ability to engage in general solicitation to the public. And while Super BowlⓇ commercials from hedge fund managers are probably not going to happen any time soon, one can reasonably assume that this will create a compelling paradigm shift in how fund managers think about their brand and marketing efforts overall. New channels of communication to reach prospects will now be available for fund managers of all sizes, potentially leveling the playing field.
In fact, fund managers can look to their online presence as an optimal first step in leveraging their new found freedom. Developing a sophisticated investor portal, one where both quantitative (performance, portfolio characteristics) and qualitative (strategy, firm history) information can be more easily shared with prospects, will be paramount to compete effectively for assets.
Proper branding, transparency and targeted marketing, while discussion points for a number of years now, will no longer be “nice-to-haves”, but will become a requirement in this new world order. Having the right investor communications portal, one with customized branding options, dashboards and integration options will prove to be a key step for fund managers to engage, deliver and win in this new landscape.