Hedge funds cleared to advertise


Wall StreetFor the first time in years, on 9/23/13, hedge funds will have the right to advertise their wares – but the complexity of their wares calls into question what kind of advertising might be beneficial. One expert says to stay away from sales pitches and work instead on image restoration.

According to financial services PR expert Davia Temin, any advertising plan must be as sophisticated, substantive and innovative as the services they offer.

The best use right now, suggests Temin, is to restore the sector’s damaged image in the wake of the 2008 financial crisis. She notes that as a whole, 42%have a negative image of hedge funds against only 14% with a positive image.

“Hedge funds in particular received some of the heaviest blame from ‘Main Street’ for the country’s financial woes, and 80-year-old securities regulations prohibited funds from rebutting their critics,” says Ms. Temin, CEO of Termin & Co.

“Ultimately, to be successful in exercising the freedom afforded by the new rule, hedge funds need a specific strategy,” says Ms. Temin, who advises that the appropriate steps include:

* Rebuilding trust and value with stakeholders
* Demonstrating self-awareness of one’s image in the market
* Avoiding pitfalls by not rushing into action too quickly and deploying a sound strategy
* Showing a willingness to learn from past mistakes
* Becoming thought leaders

“The hedge funds, private equity firms and venture capital firms who demonstrate these qualities, and adapt quickly to their changing landscape, will boost their reputations, and attract more qualified investors. There are clear opportunities here, and the best will take wise advantage of them.”

RBR-TVBR observation: The key here is to recognize this for what it is – an untapped market for some advertising business. Armed with the knowledge of how these companies can best avail themselves of this newfound opportunities to communicate with the American public, a  good sales staff should be able to quickly drum up some business.