A couple of weeks ago, Bloomberg put out an article: Hedge Fund Manager Puts Profile on Social Media, Lures $20 Million on how a young manager landed a university endowment with the help of an online platform.
It’s pretty amazing that before you even meet the manager, I’ve already done all the background research…
…as a way to centralize information in a clear way, it’s a pretty good start.
Members post their best ideas in an effort to get noticed by Ivy-League endowments, family offices, pension funds, funds of funds and other institutional investors.
The days of black box strategies and building your brand through secrecy are over, as it’s become undeniable that branding, social media, and advertising will take up-and-coming hedge funds closer and closer to the big cats in the industry. And for the big cats, it’s what will keep them at the top.
The 2013 JOBS Act has been the catalyst fueling hedge fund marketing. More and more firms are embracing social media and online platforms to source deals and grow AUM. It’s a new era of marketing…
1. Sterling Partners closed a platform acquisition within 60 days of first connecting.
2. Lighter Capital closed 6 deals in two years.
3. Brigade Holdings received 10-12 inbound emails from qualified lenders in just 3-4 days of making an announcement. One was chosen.
What do these firms have in common? They all used social media to close these deals, something that wouldn’t have been possible not so long ago. 6 deals in two years, 10-12 inbound emails… doesn’t sound like much? Well consider this – it cost them next-to-nothing; the ROI was phenomenal, and it’s only going to get better as managers and investors alike continue to evolve.
Wondering what (1)-(3) had used? Check out Axial, an online network of over 20,000 CEOs, Investors & Lenders, and Advisors.
Hedge funds and other alternative investment funds are being challenged – more than ever before – to better brand and communicate what their competitive advantage is, and why investors should trust them with their money.
Traditionally, the marketing prowess of fund managers has lagged behind their financial expertise. But how much longer can that go on for?
By Alan Chu