In the past, hedge funds were based on word of mouth communications and capital introduction platforms for their promotions. In recent years, this strategy no longer works and hedge funds have a dirtied image because marketing, branding and public relations have become increasingly important within the investment community. In addition, the new developing culture calls for more transparency and openness. Therefore, hedge funds should seek for a better communications image to build trust in their brand, image and strategy.
How does branding begin?
Branding begins with standing for something. Hedge funds should start thinking about their brands and the public opinion. They should review and evaluate the intangible features of their brand including culture, standards of service, ethics and the effect of compliance. They should also pay attention how the communication of the peak of performance to top-tier people is achieved. Hedge funds should assess their perspective and choose what they represent and know what value they bring to investors, employees and the bigger community.
Defining yourself is finding yourself
The bright and intelligent investors will directly invest in what they know or can understand. Today, because of the facilities offered by the digital, print and social media channels, hedge fund managers can easily join many financial service providers and can as well engage with potential clients and investors. When you define who you are, what you do, and why you are the best at it will provide beneficial and obvious results.
According to McKinsey, there is more than a trillion opportunity for business to make usage of social media. Hedge funds can produce more demand, develop brand/name recognition and hire highly qualified talents. Funds that have a strong investment tactic, evident culture and reliable branding will create a competitive advantage by just proving the qualities that skilled investors favor.
Validate Compatibility with Change
Content marketing and quality are very vulnerable. Nevertheless, the fund managers that can associate awareness and compatibility with change will be noticed from the crowd.
In 2011 and according to Ernst & Young, it appeared that social media was becoming the next battleground and it was necessary for investors to adapt to the new game. Hence, hedge funds should consider the development of their social media tactics as their priority; otherwise, they risk being left behind. In November 2013, Ernst & Young recommended that, investors that were not already actively involved needed to begin expressing their social media tactics “in the next 6 to 18 months, as a successful strategy will generate tangible benefits for any firm in the market.”
In conclusion, hedge funds should think of hiring a professional in marketing for financial services and branding for investment companies having all the required technical competences.