Don’t expect Ray Dalio to promise: “You're in good hands with Bridgewater.”
Or for John Paulson to insist that: “Like a good alternative, Paulson & Co. is there.”
The SEC lifting an 80-year-old ban on hedge fund advertising isn’t as much of a green light as it is spotting a deer crossing sign that’s been overgrown with brush on an old winding road. For an industry that barely creeps into the public eye, save for activists who seek attention anywhere they can get it, don’t bet on the big risk takers resorting to cold calls or sappy slogans.
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“The hedge fund business is not going to pull the wool over the eyes of some unsuspecting person,” says Richard G. Lipstein, managing director of New York recruiting firm Gilbert Tweed International. “I don’t see SAC Capital advertising in The New York Times. I don’t see a lot of people going out there and making cold calls to mommy and daddy trying to sell them naked shorts.”
Opening up advertising to the general public doesn’t necessarily unlock opportunities. No matter how broad their reach, hedge funds still can’t sell to anyone with a net worth of less than $1 million excluding their primary residence, or annual income of less than $200,000 in each of the two most recent years.
Sorry, marketing mavens, ace admen, or salesgirls-next-door: You’re not getting that call for the cushy gig in Stamford.
“Most clients are using a wait and see approach,” says John A. Breault, founder of Breault & Smith.
The industry may eventually come around, but only once it’s weighed all the risks and rewards and implemented a strategy.
“I suspect it's going to be very carefully done. The industry will carefully go after the right audience by going after the right vehicles, such as Institutional Investor or on radio, Bloomberg,” says Lipstein.
Oh, wait, media mavens and slogan sleuths! There may be something in this for you!
“There may be an opportunity for ad agencies to create the proper medium,” says Lipstein.
It also opens up the door for Web developers. Many prominent hedge funds maintain a mere shell of an online presence, particularly after Massachusetts Secretary of the Commonwealth William Galvin went after hedge fund manager Phil Goldstein for responding to a prospectus request from somebody who was not verified as a qualified investor.
Lifting the ban on "general solicitation" enables hedge funds to build a web portal that could attract the elite clients they seek.
Bankers Nerd Out on the Beach (eFinancialCareers)
What tech tools do you need to stay on top of work or escape it entirely? Bestselling futurist Scott Steinberg and tech guru offers his top picks for the jet set banker.
Morgan Stanley Plucks Raymond James Analyst (Bloomberg)
Morgan Stanley has added Brad Humphrey as a precious metals analyst from Raymond James Financial, where he was head of mining research. This move comes just weeks after Raymond James took a team of veteran advisers from Stanley Wealth Management.
Have Hedge Funds Lost Their Sparkle? (eFinancialCareers)
Larger hedge funds are becoming more institutionalized as they take a bigger chuck of investor money, and small funds are being pushed to invest in due diligence teams. The new job candidate is less about swagger and more about solid track record.
Evercore Taps 2 from UBS for Private Funds Push (DealBook)
Nigel Dawn, global co-head of the private funds group at UBS, and Nicolas Lanel, global co-head of UBS’s secondary markets advisory group are joining Evercore Partners. The pair will lead European operations for the investment banking advisory firm’s new private capital advisory business.
Wealth Management is New Win for UBS (Bloomberg)
As the Swiss lender shaves from its investment banking business, its efforts to bolster wealth management are paying off. With $1.7 trillion in 2012, UBS surpassed Bank of America as the world’s biggest wealth managers compiled by Scorpio Partnership.
Another Hedge Fund Sues Fannie and Freddie (Reuters)
Bruce Berkowitz's Fairholme Funds claims changes to the bailout terms set for mortgage giants Fannie Mae and Freddie Mac unlawfully harm shareholder value. A group of investors led by hedge fund Perry Capital filed a similar suit Sunday.
Buzz Around the Office
Calling All Single Bankers!
It seems memory is key to catching a beauty queen. Former Miss USA says she’s single because her suitors simply forget to call for a second date.
List of the Day: You’re Not Too Old
Nick Corcodilos, who has been headhunting in Silicon Valley in 1979, offers advice on how to maintain youthful hiring power at any age.
- Scope the community. You don’t have to party like a co-ed, but you do have to get out and meet the movers and shakers on the social scene.
- Meet the players and participate. Ask questions like: Which companies do business with which others?
- Have something useful to say. After all, you’ve got the experience and the know-how.
(Source: PBS NewsHour)