Hedge Fund PR: Some Tips for Managers of Hedge funds
Hedge fund PR has to be one of the most ignored marketing tools of hedge fund managers today. While they tend to be a secretive lot, hedge fund managers have come to recognize the value of hedge fund PR, particularly seeing the benefits of making themselves more available to the press.
Hedge fund managers and their advisors – hedge fund PR experts – know that the media is hungry for real time opinions of hedge fund managers, traders and marketers. They need comments on current market conditions, trends and what prospects lay ahead for the industry as a whole.
Many hedge fund managers shy away from contributing to stories in the press while most hedge fund PR practitioners would advise that they participate as long as they stick to discussing industry trends, general market trends and long-term movements within the industry.
Hedge fund PR: Some tips to get started with:
- Speak to your legal counsel to check on exactly what you can say or not say to the press.
- Develop a list of 10-15 targeted publications which you would like to appear in.
Identify the editor of financial columns within that publication or news source and introduce yourself to them as a resource.
- Speak at public events, conferences, networking events and other places in the industry where you will be heard not only by others in the industry but probably a few members of the press as well.
- Consider writing a book on your insights and experience.
Many professionals in the hedge fund industry are often interviewed on TV after they have published a book on a specific topic in the hedge fund industry, such as regulation or quantitative trading. Yes, writing a book sounds extreme to many who are already working 50 hours a week but that is also why it would be so effective to consider doing so. Those with the time and skills to write well are often not the same with those who have the experience and insight to write something unique and valuable.
The benefits of hedge fund PR are numerous. Powerful and compliant communication will attract investors and attract key talent, while projecting and protecting fund health. Whether placing news stories covering the launch of a new fund, investment strategy, staffing announcements, financial acquisitions or profit reports, generating consistent and positive exposure is essential for hedge fund PR. Hedge fund PR efforts should extend to helping to optimize fund marketing plans and capital raising initiatives. Increasing visibility of talented hedge fund managers is a huge part of this.
Kevin Waddel is a free lance writer. To get more information about Public relations, Public Relations New York, New York city public relations, Hedge Fund PR, PR, NYC Public Relations Firms, Financial Services Relations in New York visit http://www.makovsky.com
Hedge Fund PR: Some Tips for Managers of Hedge funds
Hedge fund PR has to be one of the most ignored marketing tools of hedge fund managers today. While they tend to be a secretive lot, hedge fund managers have come to recognize the value of hedge fund PR, particularly seeing the benefits of making themselves more available to the press.
Hedge fund managers and their advisors – hedge fund PR experts – know that the media is hungry for real time opinions of hedge fund managers, traders and marketers. They need comments on current market conditions, trends and what prospects lay ahead for the industry as a whole.
Many hedge fund managers shy away from contributing to stories in the press while most hedge fund PR practitioners would advise that they participate as long as they stick to discussing industry trends, general market trends and long-term movements within the industry.
Hedge fund PR: Some tips to get started with:
- Speak to your legal counsel to check on exactly what you can say or not say to the press.
- Develop a list of 10-15 targeted publications which you would like to appear in.
Identify the editor of financial columns within that publication or news source and introduce yourself to them as a resource.
- Speak at public events, conferences, networking events and other places in the industry where you will be heard not only by others in the industry but probably a few members of the press as well.
- Consider writing a book on your insights and experience. Many professionals in the hedge fund industry are often interviewed on TV after they have published a book on a specific topic in the hedge fund industry, such as regulation or quantitative trading. Yes, writing a book sounds extreme to many who are already working 50 hours a week but that is also why it would be so effective to consider doing so. Those with the time and skills to write well are often not the same with those who have the experience and insight to write something unique and valuable.
The benefits of hedge fund PR are numerous. Powerful and compliant communication will attract investors and attract key talent, while projecting and protecting fund health. Whether placing news stories covering the launch of a new fund, investment strategy, staffing announcements, financial acquisitions or profit reports, generating consistent and positive exposure is essential for hedge fund PR. Hedge fund PR efforts should extend to helping to optimize fund marketing plans and capital raising initiatives. Increasing visibility of talented hedge fund managers is a huge part of this.
Kevin Waddel is a free lance writer. To get more information about Public relations, Public Relations New York, New York city public relations, Hedge Fund PR, PR, NYC Public Relations Firms, Financial Services Relations in New York visit http://www.makovsky.com
Hedge Fund Definition – What is a Hedge Fund?
A hedge fund is a professionally managed portfolio of investments that is typically open to a limited range of sophisticated or wealthy investors. As the name suggests, these funds hedge their risks by offsetting potential losses by hedging their investments using different approaches, the most popular one being short selling. Nowadays, the term hedge fund is applied to funds that do not actually ‘hedge’ their risks but rather increase it because they expect to generate a higher return.
Mutual funds invest in a certain sector (e.g. technology) or use a specific approach (e.g. small cap growth). To determine whether a mutual fund has been performing well, its returns are usually compared to a the market benchmarks e.g. Russell Financials 1000 index. On the other hand, hedge funds seek positive absolute returns, irrespective of the sector performance or the market benchmark.
A constant complaint against hedge funds is that they are lightly regulated or largely unregulated.
This is in comparison to mutual funds which are regulated under the Investment Company Act of 1940. Hedge funds do not fall under the 1940 Act because they participate in ‘private offerings’ to sophisticated investors alone unlike ‘public offerings’ of mutual funds. This is also why hedge funds are not required to register with the SEC under the Securities Exchange Act of 1934. Due to the rapid growth of hedge funds, the SEC was prompted to study the operations of these entities in greater detail. In 2004, the Securities and Exchange Commission adopted new rules that required hedge funds with more than $ 25 million in assets to register under the Act of 1940 unless the the fund held onto the investors funds for at least two years.
In the financial crisis of 2008-2009, the short-selling of the financial stocks by the hedge funds were blamed by the financial media to be one reason why the crisis deepened as quickly as it did. The fall of Lehman Brothers in 2008 was also attributed to the continuous short-selling of Lehman stock even though there were not enough shares to cover for those short positions. This is most definitely not the end of regulation of hedge funds as this crisis highlighted how little we know about the practices of hedge funds and how the actions of the money managers of these funds can move markets.
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Hedge Fund Trading Techniques
If you love the intellectual challenge trading offers, (and like making a lot of money when you’re right,) file this video under your “must watch” list.
It’s a breakthrough new video from John Thomas, the founder of Wall Street’s first dedicated international hedge fund, on the strategies and tactics behind how he trades his elite hedge fund.
In the video, John shows you “How to Trade Like A Winning Hedge Fund Manager” by simplifying what’s happening in the market down to a handful of major trends and playing those trends like a violin.
John’s not some random “guru” who started teaching because he couldn’t make it as a trader. He’s the real deal, and he’s been winning as a trader for decades.
For most traders, 1987’s Black Monday is a bit of market history.
John remembers it as the time George Soros asked him to bid on a large blind portfolio of U.S. stocks. Goldman Sachs, JP Morgan, Merrill Lynch and Solomon Brothers; all refused the trade.
John and his team on Morgan Stanley’s equities desk bid on the portfolio and walked away with a $ 75 million profit.
Don’t forget, John is the guy who FOUNDED Wall Street’s ORIGINAL dedicated international hedge fund. Plus:
John spent 10 years at Morgan Stanley as their consultant to the hedge fund industry, and Wall Street titans PAUL TUDOR JONES and GEORGE SOROS paid to have him consult for their hedge funds.
John helped his friend, oil tycoon T. BOONE PICKENS, organize financing for a Mesa Petroleum Pac Man oil company takeover in the early 80s, when it was cheaper to drill for oil on the floor of the New York Stock Exchange than in the field.
John took a young, cocky and long haired STEVE JOBS around to pitch an Apple share offering to Morgan Stanley’s institutional investors.
On top of all that, John spent a decade being mentored by BARTON BIGGS, who is widely considered one of the top global investing strategists in the world. Biggs now runs Traxis Partners, a MULTI-BILLION DOLLAR hedge fund.
In this free video, How to Trade Like A Winning Hedge Fund Manager, John loads you down with several of his most important secrets for consistently coming up with winners, no matter what the market is doing.
Considering how much garbage is out there about trading, it’s a breath of fresh air to have another pro trader sharing their insights on how to win. Don’t miss the opportunity to get his secrets.
This video is 100% practical, usable and profitable content. If you understand half the insights John reveals in the video, you’ll instantly be a better trader.
Click below to watch it now.
==> Hedge Fund Trading Techniques Video
Rob Trader – Forex Expert
http://forexprofitmultiplier.info/
Hedge Fund Public Relations
While even practitioners disagree on the exact definition, many have said that public relations is the management of communications between an organization and its publics. That means PR is an important part of any business endeavor and hedge funds are no exception.
Hedge fund public relations can be a great way to attract new investors, something that can result from simply being more accessible to the media. Fund managers can offer the media valuable information and insights on the state of the market. They can also establish themselves as leaders in their fields by speaking at conferences, submitting articles to trade publications, and doing other things to make themselves more visible to people in their field.
If hedge fund managers are naturally good speakers and writers, clear communicators and media savvy, fantastic they can take on some PR efforts themselves, if they so choose. However, hiring a hedge fund public relations consultant is a good option for those a little less sure how to navigate the tricky terrain of media, public opinion and federal regulation. A PR consultant can easily become a business partner on whom hedge fund managers rely to meet business objectives.
If the goal is to grow, a hedge fund public relations consultant is your best friend. The consultant can increase exposure in a way that translates to a bigger footprint, and help determine strategic and sustainable ways to expand.
If the manager is on the shy side, a hedge fund public relations consultant can act as a spokesperson, or train the manager to help him or her feel more comfortable interacting with the media. Media training can go a long way toward ensuring that message intended is the message conveyed.
For example, a hedge fund public relations consultant can help solidify a reputation, as well as protect it in times of trouble. Crisis management may well be reason enough to hire a PR consultant. He or she can also help identify and prioritize stakeholder groups, which is helpful when drafting messages and targeting them at the proper audiences.
If a hedge fund manager sees fit to host or organize an event, a PR consultant can help with that.
A PR consultant can be particularly useful in the compilation of investor reports.
Of course, anyone considering ramping up hedge fund public relations efforts should consult with a lawyer to be sure all applicable laws and rules are being followed.
Kevin Waddel is a free lance writer. To get more information about Public relations, Public Relations New York, New York city public relations, Hedge Fund Public Relations, PR, NYC Public Relations Firms, Financial Services Relations in New York visit http://www.makovsky.com
Understanding Hedge Funds
All investors are looking for the most time efficient ways to make the most money. For those individuals who have a bit of extra money to spend, hedge funds may be just the way to make money fast.
The establishment of hedge funds date back to the late 1940s and were developed by Alfred Jones who was the father of unorthodox investment techniques.
One of his most successful techniques was selling short stocks while buying long stocks. This is the basis for how a hedge fund operates. Due to the number of guidelines associated with Hedge Funds it requires much more money then normal stock vehicles.
Hedge Funds guide investors in making a profit in high risk investments. Hedge Funds use technique called leverage. This is when the capital from a company’s investors is combined with borrowed money from a bank.
The fee associated with Hedge Funds is called a incentive fee.
This is a fee based on a portion, instead of a percentage, of the clients profits. The fee is actually re-invested in hopes of making the company even more money.
For the most part companies own Hedge Funds. Most people do not have enough money to meet the minimum initial investment to have their own Hedge Fund. In 2004 alone Hedge Fund investments passed one trillion dollars. By the middle of 2004, 39 companies held 1.1 trillion dollars in their Hedge Fund.
Making a profit from a Hedge Fund is all about the timing. The best time to invest in a Hedge Fund is when a company that owns one is merging with another company.
If you know a merger is going to take place, buy a large amount of shares in the company that is going to merge. Once the merge takes place the values in these stocks increase dramatically.
This is an extremely high risk investment because mergers that are often rumored to happen never do.
The activities of companies are often unpredictable.
Selling short is another great way to turn a profit on merging companies. This takes advantage of the difference between present market price and the high purchase price in the event that mergers does take place.
Hedge Funds are extremely beneficial because of their level of security. Hedge Funds that belong to companies are kept private. This type of investment takes place between a company and individual – the government and other companies are not involved.
Hedge Funds do not need to file with the SEC and are usually based in place that have less regulations like the Cayman or Virgin Islands. Due to the secrecy Hedge Funds are often believed to be illegal and unethical.
However, this is simply not true. Hedge Funds are a legal way to make a great profit. Remember investing in Hedge Funds takes a great deal of money and it is an extremely risky investments. However, the immense pay off can change your life forever, and certainly it is a risk that many people are willing to take to be financial secure.
Incubator Hedge Funds
What is an incubator hedge fund?
Simply put an incubator hedge fund is an investment vehicle designed for you (or you and your partner) to trade your own assets to establish a track record for trading. Incubator hedge funds are a low cost solution to beginning the process of starting and growing a full fledged hedge fund.
What types of incubator hedge funds are available?
There are many different types of incubator hedge funds which you can start up. Basically an incubator hedge fund can be started for any specific strategy and it will be based on the investment program you will use in the future to trade outside money.
One very popular type of incubator fund is a forex incubator hedge fund. In the forex incubator hedge fund the manager will trade in the off-exchange foreign currency markets. Because of the high leverage involved in forex trading, managers of forex incubators often have volatile returns.
A forex manager should note that there is likely to be registration rules for managers in the future. The CFTC is working on proposing these rules and the NFA has already produced a test for the registration of managers – the Series 34 exam which is a 40 question, 1 hour exam for forex managers.
What are the biggest issues with the incubator hedge fund?
The single biggest issue with the incubator hedge fund is that you must trade only your own assets in the vehicle. The reason is that the interests in any type of fund are securities and if you “sell” interests in the fund to a party who does not have an active roll in the management of the fund, you will need to go through the whole hedge fund formation process and produce lengthy offering documents.
This process is, necessarily, more costly and time consuming than starting an incubator hedge fund and it is a deterrent for those managers who simply want to establish a track record of their trading for later on.
Additionally, if there are outside investors in any type of fund structure there are potential investment adviser issues at the state level.
What is the incubator process like?
The incubator is a relatively simple process. You will start off by talking with a hedge fund attorney who has specialized knowledge of hedge fund formation. After the discussion, the attorney will begin to form the incubator entities and then help you to establish your trading account. The attorney will also provide you with background on all of the important rules you will need to know about creating a marketable track record.
This may be deemed to be attorney advertising in some jurisdictions.
Bart Mallon is a hedge fund attorney specializing in forex registration and hedge fund formation. He also writes extensively on issues related to the series 34 exam.
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Hedge Fund Strategy & Tactics
The Mad Hedge Fund Trader reveals, How to trade like a winning hedge-fund manager: Trading Strategy & Tactics
This breakthrough new video will make you richer. (and a lot of high-priced, so-called “trading gurus” a little poorer.) It’s John Thomas’s (the Mad Hedge Fund Trader) latest presentation on the strategy and tactics behind how he trades his elite hedge fund.
Click here to get his hedge fund trading secrets right now, while they’re 100% free.
The buzz surrounding his last presentation on how to play the commodities boom was enormous (check out on the page below this latest video). I think it was one of the most popular trading and investing videos posted online this year.
No wonder John Thomas is wiping the floor with almost every other hedge fund in the world right now (he’s literally one of the top traders in the business today).
In this video, he shows you how to trade your IRA or 401(k) like it’s a hedge fund.
PLUS, he breaks down the strategy and tactics he used to help regular investors make a killing in the market this year.
This is the same strategy that has a history of turning $ 100,000 into $ 420 million, by the way… and those are REAL numbers, NOT pie-in-the-sky hypotheticals.
This is a barn-burner of a video. He just lays it all on the line. Your other option is to just give him the $ 5 million minimum investment in his hedge fund and let him trade it for you, OR you can click here to watch this free presentation on how to do it yourself.
You’ll want to hurry. The rumor is this presentation is not going to stay up for long, so I urge you to watch it now. Make sure to watch for the surprise at the end.
It’s one of the single greatest free opportunities I’ve ever seen for traders.
Rob Trader – Forex Expert
http://tradingtoollist.co.cc/
Hedge Fund Regulation Trends
Hedge funds are pools of money invested by individuals or groups of qualified investors who met federal requirements, which are determined by the US Securities and Exchange Commission(SEC) in the United States. Today, there is much talk about regulations in the hedge fund market. The two leading financial market regulators, the SEC, and Financial Services Authority (FSA) seem to be slowly but steadily moving in direction of controlled regulation.
As hedge funds popularity grows year after year, the major concern is how such growth would impact broader markets in unforeseen ways. According to Richard Herring, finance professor at Wharton and co-director of the Wharton Financial Institutions Center, “The important issue that has not been much discussed publicly is the potential implications for the industryif hedge funds do reach a broader market.”Herring argues that regulation of hedge funds would be an irrevocable mistake, explaining further that “[r]egulation is in some sense is not compatible with the fundamental role and character of hedge funds”, adding that “hedge funds are designed by law with maximum flexibility.”
Recent trends in the hedge fund industry indicate continual improvements in their ability to cope up with systemic risk and reflect a much larger movement towards stability throughout global financial markets.
Policymakers must keep in mind the fact such trends because the history of financial markets regulation reveals that financial and technological innovations often render regulations obsolete, requiring them to be restructured or either repealed. The hedge fund industry’s constantly and rapidly changing structure and practices almost guarantee that new regulation would at best be redundant and might even obliterate further developments.
The hedge fund industry has done a commendable job for the most part regulating itself. Hedge fund current regulations have served its purpose well, hedge funds are moving forward: current hedge fund assets are in excess of US$ 800 billion. In the first half of 2010, the United States witnessed a fundamental shift in the global hedge fund industry as it enters a period of significant growth set against financial recovery and increasing scrutiny from regulators and institutional investors. The recent pace has carried industry assets across the 1.5 trillion USD mark, with sentiment aimed for continued growth. The “renaissance”can be attributed majorly to strong performance in end of 2009, but net inflows have also steadily risen. Further testimony to the industry’s dramatic resurrection can be seen in the increasing number of hedge fund managers who are now closing their funds to new investors. Anticipated regulation, driven by external factors, is predicted to be injurious to the hedge fund industry on a global
level. But, if there is not a globally coordinated and managed regulatory effort, it is likely that some funds may choose exploit potential loop holes.
Investors are now focusing more than ever on liquidity and transparency. With these principles in place, investors have more control and are able to dictate terms of the fund to a greater scale. Additionally, the level and quality of investor due diligence has been continually rising. Also, an increase in managed accounts, single investor funds, distressed asset funds and funds investing in emerging markets has been noticed in the later months of 2010.
Learn more about commodity hedge funds and certification in finance at CAIA.Org.
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Hedge Fund Insurance
A hedge fund is a privately held investment fund directed by a fund manager. Aptly named, hedge funds exist in order to protect investors from downturns in the market while at the same time they attempt to maximize earnings during positive growth trends. Hedge funds typically cover a wide array of investments and are not geared towards smaller-scale investors because of the degree of risk associated with them. Instead, hedge funds are geared toward investors with quite a bit of expendable capital. As a result of this, hedge funds represent only a small percentage of investments made within the U.S. and are aimed at serving an even smaller number of investors.
Because hedge funds deal with very large sums of money, the person or persons running the fund needs to have some sort of protection. This is where hedge fund insurance comes into play.
Hedge fund insurance products aim at protecting managers from a host of different problems. Errors and omissions insurance is one such product. This type of insurance protects managers from any claims made against the fund by investors. These claims can originate due to a misstep on the behalf of the manager and will cover the defense and judgment of any case brought to court up to the limit agreed upon by the manager and the insurance company being dealt with.
Another important insurance product that all fund managers will wish to have is a fidelity bond. This will protect hedge fund investors from any dishonest act made on behalf of the fund’s employees. If money is mismanaged or stolen from the fund, this insurance will repay the amount lost to the investor that was harmed.
This will also protect investors from wire transfer and computer fraud.
Hedge fund managers will also want to insure the lives of their partners. Life insurance is applicable because the manager will have an insurable interest in the fund partner’s lives. If one partner were to die, the life insurance benefit amount would be necessary to pay for the buying and selling of shares within the fund. This is true especially when there are several owners of the hedge fund and dividing up the deceased partner’s share would be extremely difficult without the compensation of a life insurance benefit.
Finally, for managers and partners that wish to have the maximum protection, an umbrella policy is usually added on top of all the other policies owned. Umbrella policies are repetitive policies because they will cover areas that already possess coverage. Umbrella insurance cannot be overlooked however, especially for hedge funds with extremely large amounts of investment capital. An umbrella policy will provide partners with larger amounts of protection for a low premium cost.