Hedge Fund Marketing

As a marketing and communications firm serving the financial services industry,we have been closely watching the response of the hedge fund world to last fall’s loosening of “general solicitation” restrictions. We are not surprised that to date
we haven’t seen a torrent of new marketing or advertisements, even in industryspecific publications like Pensions & Investments.

We, however, believe that this early reticence to enter the fray will dissipate as hedge fund firms become more comfortable with the concept of marketing and as the success of early adopters contributes to a perceived competitive necessity to “get in the game.”

Since “private funds” and wealth management firms target similar markets, private fund marketers could potentially learn from the strategies now commonly employed by wealth managers. For example:

• Clearly define your target market and choose marketing media and methods that will have the greatest impact on that market. Well-chosen sponsorships, event marketing, targeted direct marketing, and thought leadership are typically more effective and less costly than mass media in penetrating the wealth and institutional markets.

• Ensure that messaging and branding communicate your distinctive core value proposition in a way that is clear and compelling to your target audience. Avoid imagery and graphical elements that are overly retail or inappropriate or inconsistent with the market.

• Keep branding and messaging consistent across all contact points, from client materials and thought leadership to sponsorships and digital presence. Clarity, transparency, and consistency are prized brand elements in today’s HNW and institutional marketplace.

It is too early to tell how extensively private funds will leverage public marketing tactics to their benefit or how such marketing will define and change the competitive landscape for these products. However, these firms may be able to benefit from the proven marketing strategies of leading wealth managers.

For more information on how Optima Group has helped wealth managers and hedge fund firms successfully market to the wealth and institutional markets, please contact us at 203.255.1066.