Hedge Fund Social Media Usage Set to Increase to 75% Among Leading Funds
Hedge Funds, once known for their black box strategies and a tendency towards secrecy, have recently changed the narrative, becoming increasingly active on online and social spaces. In fact, a recent study by Peppercomm predicted that in 2015 social media usage by hedge funds and hedge fund managers will rapidly increase. This trend correlates with the significant increase in hedge fund and alternative investment branding stemming from the 2013 JOBS Act, which changed the hedge fund marketing game.
The study explained that not only are 10% of hedge funds now on Twitter, but two-thirds of the largest market-leading hedge funds also have a LinkedIn presence — a dramatic shift over just the last two years. Hedge fund social media usage numbers are expected to reach 20% on Twitter and 75% on LinkedIn by the end of the year.
Factors contributing to the trend of an increased hedge fund social media and online presence come from a few different directions. Institutional investors and retail investors increasingly use digital media to discover and research hedge funds and other potential investment opportunities. Hedge funds and other alternative investment funds have also been challenged by the need to better brand, market, and communicate what really makes them different and interesting to investors.
The JOBS (Jumpstart Our Business Startups) Act, which went into effect in September of 2013, lifted many of the bans on hedge fund advertising and private securities marketing to the public. These bans previously prevented hedge fund social media use for the fear that such information could be considered advertising. But in a world where information is becoming increasingly public and these hedge fund marketing bans have been lifted, such proactive steps in the world of hedge fund social media now only help to control your reputation and image in accurately reflecting investment strategies and competitive differentiation.
For the years to come, hedge funds and other financial investment vehicles need to increasingly think of ways in which to differentiate themselves from the market. At MBC Strategic, an award winning financial and investment marketing, branding, and communications firm, we pride ourselves on explaining the unique benefits of our client’s products to potential investors, and can assist in alternative investment branding, advertising, and utilizing social media platforms.
Read more about MBC Strategic’s alternative investment marketing services and see how we have helped other alternative asset management firms grow their business and successfully reach out to and communicated with investors.
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