This document discusses how hedge funds can market to ultra-high net worth investors and family offices in light of lifted restrictions under the JOBS Act. It provides an overview of marketing strategies and considerations, including expanding networking and using various platforms like websites, social media, conferences and newsletters. The document also notes that accredited investors are a diverse group that rely on different resources, and presents scenarios for how funds can maintain, reallocate or invest in their marketing approach.

1. Capitalizing on the JOBS Act:
How to Market Hedge Funds to
UHNW Investors and Family Offices
with
April J Rudin and Hannah Shaw Grove
August 21, 2013

2. Wealth Marketing Experts

3. • Intended to create jobs, alleviate tight credit markets and create
access to capital
• Instead it lifted the general solicitation ban for private
placements
– Advertising and other marketing activities
– Crowd-funding
– Third-party accreditation portals
• Hedge funds can engage with clients and potential investors in
new, more effective ways
What is the JOBS Act? Is It a Law?

4. UHNW
Inner Circle
Family Offices
Advisors
Strategies for Breaking through to
the Ultra-Affluent

5. MFOs
SFOs
How Funds Market Today Doesn’t Address
Range of Accredited Investors
TOOLS
•Track record
•Pitch books
•LP communications
•Offering documents
•Fund/Market commentary
Employees
(salaried or equity)
Third-Party
Marketers
Cap Intro
Professionals
Investment
Consultants
Referrals

6. MFOs
One-to-One Introductions vs. Newer,
Amplified Platforms for Visibility
74.6%
YES
Source: Beyond Performance, N=68
25.4%
NO
Marketing Specialists
say their networks are
exhausted in < 1 year

7. • Brand awareness
• Advertising
• Media relations
• Websites and digital media
• Social media
• Thought leadership
• Conferences and events
• Newsletters and communications
Generalized Solicitation Opens Opportunity
for Marketing Activities

8. Accredited Investors are a Broad Market

9. They Think Differently From Each Other…

10. Referential
Group
… and Rely on Different Resources for Guidance
Third-Party
Marketers
Primary
Intermediaries
Media Personal
Research
History
Source: The Sky’s the Limit

11. Opportunistic Credit
Generating alpha…
King Street Capital Management
Renaissance Technologies
Event Driven
Goldman Sachs Asset Management
We will use this period of higher volatility…
Baupost Group
Long-Short Equity
Paulson & Co
Soros Fund Management
Our sector expertise and understanding of financial markets…
Och-Zif Capital Management
Bridgewater Associates
Equity Special Situations
Ways to identify and mitigate risk exposure…
We focus on risk analytics…
Millennium Partners
We identify smaller, undervalued companies…
Moore Capital
We have a unique, proprietary process…
DE Shaw Group
Global Macro
Convertible Arbitrage
Multi-Strategy
Market Neutral
JP Morgan Asset Management
Wellington Management
BlackRock

12. Corporate Website
Pitch Books & Client Presentations

13. Reports & Updates
Newsletters
Thought Leadership

14. Press Release
Online Trade Journal
Print Publication

15. Twitter
LinkedIn Profile
Blog

16. Conferences
Client Events

17. • Transparency & authenticity
• Smaller is better
• All mobile, all the time
• Doing well by doing good
• Don’t trust “suits”
• Impact & affinity investing
• Globally networked
• Diminishing value of track records
Next Gen Wealth Has Its Own Values
A different process with different messaging

18. Branding X X X
Advertising X X
Websites/Digital X X
Media Relations X X X
Social Media X
Thought Leadership X X X
Conferences X X
Events X X X
Newsletters X X
Communications X X X X
What Is the Right Mix for Your Fund?

19. Business Decisions Ahead
One of three scenarios face hedge fund firms
Maintain Reallocate Invest

20. Common Objections & Questions
Perceived obstacles to proactive marketing by hedge funds
• The fund is already closed (or at capacity)
• Our company is very small, no marketing and sales people on
staff
• We don’t have a marketing budget
• Won’t advertising and PR attract the attention of the wrong
people?
• How can my marketing efforts focus on accredited investors
only?

21. Seek Professional Advice to Reverse
Public Perception

22. HNW Advisory Board
Educational Support
HFA Marketing Survey
Answers and Insights for HFA members
April:
april@therudingroup.com
www.therudingroup.com
@therudingroup
Hannah:
hannah@hsgrove.com
www.hsgrove.com
www.pw-mag.com