JOBS Act won’t mean mass marketing for hedge funds
By Lawrence Delevingne
Mon Apr 9, 2012
As the industry mulls the new rules, big funds aren’t excited. No sponsored golf tournaments on the way, say managers.
An imaginary view of Times Square. Managers and
attorneys say mass advertising by hedge funds is unlikely
to become a reality anytime soon.
Hedge funds are on the cusp of being allowed to advertise
for the first time, thanks to President Obama signing the
Jumpstart Our Business Startups—or
"JOBS"—Act. Elite lawyers are calling it a "
fundamental change in the nature of private fund offerings"
and industry observers are speculating that there could be
television ads on CNBC by Bridgewater Associates and
Och-Ziff Capital Management Group or a
basketball arena named after D.E. Shaw.
Not so fast.
While hedge funds will technically be permitted to
do almost anything that doesn’t violate anti-fraud
rules, it’s unlikely they will dramatically alter
how they market themselves, especially the brand names that
investors are already clamoring to invest with.
"It’ll change things at the margin, but it
ISSN: 2151-1845 / CDC10004H
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