Jobs Act Changing Hedge Fund Communications: New Peppercomm Study
66% of Hedge Funds on LinkedIn and 10% on Twitter; 14% of Largest Global Firms Launched Websites in 2014.
Hedge funds are beginning to take advantage of new communications channels one year after the enactment of the JOBS Act, according to a new Peppercomm study titled “The JOBS Act at One Year: A Changing Hedge Fund Communications Landscape.”
“The JOBS Act is working by removing gray areas surrounding hedge fund communications and enabling more active engagement,” said Thomas Walek, President of WalekPeppercomm, the leading integrated communications firm serving the hedge fund sector. “This new regulatory environment is one piece of a larger trend as hedge funds explore new communications strategies and tools in response to intense competitive pressures, new products like liquid alternatives, and client demands for relationships built on more than performance numbers.”
The Peppercomm study focused on hedge fund communication trends in the first year following the implementation of the Jumpstart Our Businesses (JOBS) Act, which went into effect September 2013.
The study used both quantitative and qualitative research to look at new ways that hedge funds are enhancing their relationships with investors and the media, including by building or expanding websites, launching social media accounts and engaging in advertising.
Highlights of the research include:
- 66% of 2014’s largest 292 hedge funds are on LinkedIn, and 10% are on Twitter. Of these, six hedge funds post on LinkedIn at least once a month and seven hedge funds Tweet at least 10 times a month.
- Monthly hedge fund mentions on Twitter recently reached a high of 80,000 Tweets, and have not fallen below 40,000 in the last two years.
- Among the largest 285 global hedge funds in 2013, 14% launched websites in 2014.
- Among the 185 global hedge funds with $1 billion–$5 billion in assets, 23% had websites in 2013. By June of 2014, an additional 39 funds launched websites and 11 more moved from a closed site to a more open site.
- Media mentions of hedge funds are projected to reach record levels above 100,000 in 2014, up nearly five-fold over the last decade.
- Advertising by hedge funds has been nearly nonexistent. However, some traditional asset management firms and intermediaries are actively touting their alternative investment solutions and expertise via paid advertising.
- Hedge funds are hiring internal communications executives to manage brand, visibility and reputation.
Peppercomm, Inc., an award-winning strategic, integrated communications and marketing firm headquartered New York City with offices in San Francisco, Boulder and London, prides itself on listening first, last and always. The firm’s tagline: “Listen. Engage. Repeat.” emphasizes the unique approach Peppercomm takes in understanding exactly how a client can engage in authentic conversations with its audiences.http://www.peppercomm.com
WalekPeppercomm is a Peppercomm specialty team focused on financial services and capital markets. WalekPeppercomm was formed in 2013 when Peppercomm acquired Walek & Associates, which was launched in 1998.