The JOBS Act has changed the challenge for hedge funds.

Download as PDF

Respond intelligently with our “Right-size Playbook.”

Hedge funds may advertise within limits, but only if they take reasonable steps to verify that investors are accredited. Attract people who can actually invest with you and gain competitive advantages.

No blimps or billboards.

The costliest mistake hedge funds can make is to advertise too broadly, generating unqualified leads that will burn hours of staff time to verify accredited investor status.

The JOBS Act requires hedge funds to have a demonstrable, repeatable set of policies and procedures in place to vet accredited investors. The SEC also will have more to say about advertising content and standards, especially relating to performance.

Therefore, another trap will be to move too far ahead of evolving regulations, too fast.

At Ulicny, we take a strategic rather than promotional approach to marketing. We don’t believe hedge funds should respond to the JOBS Act with “blimps and billboards” marketing. We understand that a hedge fund’s intellectual capital is an essential differentiator, the engine that drives performance. The competitive edge your intellectual capital creates must be front and center in all you say.

Keep learning from your investors.

By emphasizing intellectual capital and a clear competitive edge, you can directly target and engage accredited investors. In our experience, this process is ongoing and two-way. Through each touch with a prospect or an investor, you will learn what is most motivating to your target investors and how to distill your message. A plan keeps this process on track.

A Simple, Right-size Solution

Ulicny’s “Right-size Playbook” is designed to make it easy for hedge funds to respond to a changing environment. The Playbook is a time-tested, three-step formula:

  1. Differentiate your competitive strengths and capture them in your messaging.
  2. “Right size” a marketing plan that is integrated, not ad hoc, and budget for your firm, to reach accredited investors in the time, place and way they prefer.
  3. Make your website the hub of a continuously reinforcing marketing strategy. Now that JOBS permits you to share product information on your site, upgrade it to:
  • Make it easy for accredited investors to find you in search engines.
  • Use short videos to quickly state your edge and pique investor interest
  • Share your intellectual capital via white papers and a blog
  • Use targeted PR and social media to send qualified leads to your site

Click here for a downloadable pdf

Learn more about our “Right-size Playbook.

—November 2013