Welcome Guest

Businessex.Com
Home Article Features Columnists  Branding in a New Era of Opportunity for Hedge Funds

Branding in a New Era of Opportunity for Hedge Funds

Ah...the mysterious hedge fund. To most, hedge funds are known for their lack of transparency and for operating in the shadows of Wall Street bluster.

Tags: James Thompson, Branding, Hedge Funds, Hedge Funds Branding,

BY James Thompson  |  Jul 01, 2014 comments ( 0 ) |

Images of hedge funds invoke fear and discreetly celebrated financial windfalls in dim, velvety Manhattan clubs and coastal golf courses spangled with seagulls. Most citizens have never fully understand what hedge funds do and, and many have even blamed hedge funds for the problems of society.

 

It is unfair, of course, to discriminate against hedge funds as a class.  Just as there are good seeds and bad seeds through every facet of society, there are plenty of good hedge funds that in fact help contribute to a meaningful society.

 

These days, there is a new era offering new opportunities for hedge funds to open themselves up to the public.  Recent changes to federal laws allowed funds a new way to publicly solicit when raising capital.  The impetus was to allow companies and funds easier access to capital, and investors easier access to deals.  This means that the funds could now publicly market to everyone, and not necessarily rely only on sales to private investors behind closed doors.

 

Now, hedge funds must determine whether they want to take advantage of these opportunities.  If they do, the question is how will they manage public perception and manage their brand since they would expose themselves to the public?  Hedge funds such as Bridgewater Associates LP, BlueMountain Capital Management LLC, Caxton Associates LP, Diversified Global Asset Management Corp., and Aetos Capital Management LLC have already begun targeting the general public as potential investors. Others have and will follow suit. 

 

The key to success with such offerings is not just a promise of financial gain, but also the cultivation of a trustworthy and respected brand.  After all, these funds have to appeal to the investors that you only find when publicly soliciting.  They have to differentiate themselves from other hedge funds and other investment opportunities, and failure to do so could mean the difference between success or failure for hedge funds relying on these new laws.  Everyday investors might not care only about performance numbers and a glossy brochure. Everyday investors may seek a set of values and a belief system exercised by conscionable human beings who are responsible for their decisions and actions. Investors all want a brand to believe in, and it’s up to the hedge funds to build that proper brand.

 

The truth is, many hedge funds will not opt to raise money publicly.  Most of them are content handling the affairs of private, limited partners with whom they’ve enjoyed a reliable and mutually-profitable relationship. And that’s their prerogative.  It’s not necessarily a bad thing.  In fact, many industry experts lament the new laws and believe that everyday investors are too unsophisticated to understand the complexities of investing into hedge funds. Others, of course, believe that investing opportunities should be given to everyone.  As with many of these types of debates, the truth probably exists somewhere in the middle.

 

But one thing is for certain: this is a new era for hedge funds, and smart money thrives best in the light of opportunity.

 

About the author:

James Thompson is a writer for VerifyInvestor.com

Please add your comment

Rating
Not readable? Change text. Enter the characters as seen on the image (case insensitive)
  Notify me of follow up comments via e-mail   Subscribe for daily newsletter

Related Articles

How to pitch your biz plan

BY Nandini Vaidyanathan and Ramanan Subramani

Imagine you are in the elevator with Warren Buffet or someone like him, and you have this brilliant idea that you think can change the world, what ...

VC Funding on Uptrend

BY Arindam Ghosh

To begin a business and expand its reach in the market, finance is the most ingredients and to generate this fund, venture capital is one of the mo...

Marketing Entrepreneurship

BY Harish Bijoor

As big consultancies break up with corporates suspecting value-propositions, niche boutique consultancies focus on individual specialty domains to ...

Test of True Entrepreneurship

BY Megha Poddar

Entrepreneurship- A word that everybody interprets differently. An aspiration that everybody wants to be but somewhere are reluctant to call themse...

Embrace technology at the outset

BY Bala Girisaballa

Not long ago, online presence was an after thought. It was also a luxury that only large companies indulged in because it involved hiring programme...

Teaming up essentials for new ventures

BY Sai Swaroopa

Teaming up essentials for new ventures Selecting the core team for your new venture is a highly critical start-up activity. Successes and failu...

Get Max from Social Media

BY Deep Banerjee

After you plan to use Social Media Marketing (SMM) for your business, the first question that strikes you is if you really need a blog. This is a q...

Do not Always Hire the Best

BY Ajay Wahi

Now do not frown thinking why am I saying this? Because the answer is simple- Talent, refusing to stay put in SME will fly off to greener pasture o...

GETTING MORE DONE IN LESS TIME

BY Tony White

We are all given the same 24 hours in a day, and yet, some individuals seem to be able to achieve a lot more in that time frame unlike others. ...

Follow the Rules of the Game

BY Seema Jhingan

Often considered the nucleus of expanding industrialisation in India, small and medium enterprises (SME) have seen a prodigious rise in the recent ...

Power of customer engagement

BY Deep Banerjee

In present times companies have only one option - 'customer engagement' to remain competitive and profitable! The term 'engagement'...

Entrepreneurship With Renewable Energy

BY Rita G. Chauhan

Recently, Prime Minister Manmohan Singh announced that India is going to double its renewable energy capacity to 55,000 MW by 2017 as an effort to ...