Ronn Torossian, CEO, 5WPR
One of the biggest marketing tools that hedge funds tend to avoid is public relations, which is unfortunate because making a hedge fund available to the press and training the spokesperson for the hedge fund properly can lead to a lot of success for the business.
There are plenty of ways that a hedge fund can start doing some of the basics of public relations for the business, without working with a public relations agency or firm from the very beginning, and some of these things are fairly simple for a hedge fund to do.
The public, along with the media, is constantly looking for real-time opinions from marketers, traders, and hedge fund managers because they need information on the current market trends, conditions, as well as any future predictions. However, most of the hedge fund managers tend to shy away from any sort of press contributions in fear of making things worse for the business.
Fortunately, there is an easy way to solve this issue, and all it takes is for the hedge fund manager or the spokesperson for the business to speak to a legal counsel to make sure exactly what information can be provided to the press and the public.
After covering all of the information, the hedge fund can develop a list of a dozen publications that the manager wants to appear in and identify the editors or news sources of those publications. The next step is finding the contact information of those people and introducing the manager as a potential resource for the industry.
Another way that managers can improve the public perception of the hedge fund is by speaking at conferences, public events, networking events, or any other places within the industry, where the spokesperson will be heard by other members of the industry, and even some members of the press.
A very effective way for a manager to market their hedge fund is to be educational and easy to understand. Most hedge funds are difficult to understand, which doesn’t lead to a lot of success, especially in this industry, where most of the investors avoid investing in things that they don’t understand.
However, being transparent and simple in explaining the investment process to others is a great way to attract even more potential investors. The trick here is in the balance – providing enough information and details that make investors interested in the hedge fund, while also not overwhelming the audience with strategies and techniques that others might find to be a bit more complicated.
Writing a book on experiences and insights from the industry is one great way to do this. Additionally, many of the hedge fund industry professionals are then interviewed after publishing a book on a specific subject. While writing a book might seem difficult to a person that’s already working more than full-time during the week, but anyone with the skills, time, and experience should consider doing this because they can easily provide a lot of insight and value to the public.