Hedge Fund Marketing – On the Verge

By Katherine Paulson


As a marketer in the financial industry for over twenty years, I have experienced many challenges and limitations due to the highly regulated environment.  Although I often envied my professional peers who had tangible “products” that they can see and touch, at the end of the day, I was happy to meet the challenge.  Namely, because I wanted to simplify and bring transparency to the complex nature of financial products.  I’ve always felt a deep responsibility to my audience because they were making real-life choices with their hard-earned savings that could impact their retirement and financial future.


Entering into the world of private investing and hedge funds adds another level of complexity and scrutiny for marketers.  In fact, prior to September 2013, hedge funds were not permitted to advertise at all. Click here to read more. Now, however, with the signing of the JOBS Act, the ban on general solicitation for certain funds has been lifted.  This change creates many new opportunities for hedge fund managers like AlphaTrAI to bring transparency and education to our clients.


When you factor in the trauma of the financial crisis in 2008 and the recent revelations about the impact of social media on retail investors, the financial industry has woken up to the importance of their brand and messaging.  We more clearly realized that building the public’s trust and reputation was paramount.  In an industry dominated by analysts, mathematicians, and regulators, this was not an easy realization.  Marketing often took the back seat in priority, but no longer is this the case. 


It is an exciting time because these new perspectives and rules have opened up opportunities for hedge fund managers to spread awareness of our industry.  We can now promote using what many other products take as a given, including print and digital magazines, newspapers, TV, podcasts, websites, LinkedIn, Twitter, Facebook and other social media platforms.  Click here to read more about rule 506(c)


This new freedom enables stronger communications between our potential investors.  While we understand that hedge funds are an exclusive market, they are still an important part of the global financial ecosystem.  This is why it is important to keep in mind the audience we are messaging to is clear, honest, and specific.  


I believe we are on the verge of a breakthrough in hedge fund marketing.  Much like our products, the marketing of hedge funds is emerging.  At AlphaTrAI we are in a position to both disrupt the asset management industry with our AI-enabled fund as an emerging asset class and in our marketing methodology.  This moment offers us the opportunity and responsibility to connect with our potential clients as we never have before.


At AlphaTrAI, we strive to provide the most reliable, sustainable, and insightful algorithmic-based financial products.  I’d like to highlight the last part of our vision.  Bringing insights, providing education, transparency, and awareness in an innovative way – these are the tenets that we work toward achieving.  I remain optimistic and passionate about the future of hedge fund marketing, because so much progress has been made.  As marketers, we will need to seize upon this opportunity as pioneers in influencing marketing methodologies going forward emphasizing education, awareness, and transparency.