Now that the SEC has lifted the 80-year ban on hedge funds promoting private placements, many firms are looking for new, innovative ways to market, and advisors' clients are likely to be the recipient of those marketing messages.
At Finect, where we focus on how advisors can use social media to build their businesses, we've spoken to many managers, and while the John Paulsons of the world will continue to operate in a tight-knit, relationship-driven environment, others are turning to social media.
The question for fund managers is how they can use social media safely and effectively. How can you reach the right accredited investor while sharing appropriate information about investment products?
Here are four key tools that can not only help fund managers communicate the right way, but are also good reminders for all advisors in how to communicate with their own high-net-worth clients and attract prospects.
1) Use a Comprehensive Content Distribution Tool, While Staying Compliant
Several tools exist that enable anyone to distribute content to LinkedIn, Twitter and/or Facebook with a push of a button. But few offer an integrated compliance feature that provides for employee tracking, archiving and reporting to enable managers to meet regulatory requirements. Our company, Finect, is one firm that offers such a simple and compliant way to use social media to address this concern.
Content—from research to investment product information—can be "pushed out" and maintained, enabling managers to control what employees say and to whom. (For readers who want to learn more about how to create compelling content, we invite you to view this tutorial.)
2) Provide a Compelling Online Profile, and Don't Forget the Obvious
