capitalizing on the jobs act: how to market hedge funds to uhnw and family offices
DESCRIPTION
The JOBS Act allows hedge funds to advertise/market their funds beginning on 9/23/13. Are you prepared with a marketing plan? Who are UHNW investors and what do they value? Sponsored by HFA (Hedge Fund Association)TRANSCRIPT
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Capitalizing on the JOBS Act: How to Market Hedge Funds to
UHNW Investors and Family Offices
with
April J Rudin and Hannah Shaw Grove
August 21, 2013
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Wealth Marketing Experts
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• Intended to create jobs, alleviate tight credit markets and create access to capital
• Instead it lifted the general solicitation ban for private placements
– Advertising and other marketing activities– Crowd-funding– Third-party accreditation portals
• Hedge funds can engage with clients and potential investors in new, more effective ways
What is the JOBS Act? Is It a Law?
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UHNW
Inner Circle
Family Offices
Advisors
Strategies for Breaking through to the Ultra-Affluent
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MFOs
SFOs
How Funds Market Today Doesn’t Address Range of Accredited Investors
TOOLS•Track record•Pitch books•LP communications•Offering documents•Fund/Market commentary
Employees(salaried or equity)
Third-Party Marketers
Cap IntroProfessionals
Investment Consultants
Referrals
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MFOs
One-to-One Introductions vs. Newer, Amplified Platforms for Visibility
74.6%YES
Source: Beyond Performance, N=68
25.4%NO
Marketing Specialists say their networks are exhausted in < 1 year
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• Brand awareness• Advertising• Media relations• Websites and digital media• Social media• Thought leadership• Conferences and events• Newsletters and communications
Generalized Solicitation Opens Opportunity for Marketing Activities
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Accredited Investors are a Broad Market
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They Think Differently From Each Other…
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Referential Group
… and Rely on Different Resources for Guidance
Third-PartyMarketers
Primary Intermediaries
Media Personal Research
History
Source: The Sky’s the Limit
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Opportunistic Credit
Generating alpha…King Street Capital Management
Renaissance Technologies
Event Driven
Goldman Sachs Asset Management
We will use this period of higher volatility…
Baupost Group
Long-Short Equity
Paulson & Co
Soros Fund Management
Our sector expertise and understanding of financial markets…
Och-Zif Capital Management
Bridgewater Associates Equity Special Situations
Ways to identify and mitigate risk exposure…
We focus on risk analytics…
Millennium Partners
We identify smaller, undervalued companies…
Moore Capital
We have a unique, proprietary process…
DE Shaw Group
Global Macro
Convertible Arbitrage
Multi-Strategy
Market Neutral
JP Morgan Asset Management
Wellington Management
BlackRock
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Corporate Website
Pitch Books & Client Presentations
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Reports & Updates
Newsletters
Thought Leadership
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Press Release
Online Trade Journal
Print Publication
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LinkedIn Profile
Blog
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Conferences
Client Events
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• Transparency & authenticity• Smaller is better• All mobile, all the time• Doing well by doing good• Don’t trust “suits”• Impact & affinity investing• Globally networked• Diminishing value of track records
Next Gen Wealth Has Its Own ValuesA different process with different messaging
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Branding X X X
Advertising X X
Websites/Digital X X
Media Relations X X X
Social Media X
Thought Leadership X X X
Conferences X X
Events X X X
Newsletters X X
Communications X X X X
What Is the Right Mix for Your Fund?
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Business Decisions AheadOne of three scenarios face hedge fund firms
Maintain Reallocate Invest
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Common Objections & QuestionsPerceived obstacles to proactive marketing by hedge funds
• The fund is already closed (or at capacity)• Our company is very small, no marketing and sales people on
staff• We don’t have a marketing budget• Won’t advertising and PR attract the attention of the wrong
people?• How can my marketing efforts focus on accredited investors
only?
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Seek Professional Advice to Reverse Public Perception
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HNW Advisory BoardEducational Support
HFA Marketing Survey
Answers and Insights for HFA members
April: [email protected]
@therudingroup
Hannah: [email protected]
www.hsgrove.comwww.pw-mag.com