Last week the SEC voted 4-1 to end a ban on "general solicitation" by many private issuers.
The general summary is now these private issuers can publicly discuss, advertise investment opportunities, and publicize past performance.
This is also good news for law firms, as they will now be consulted more then before due to new rules put in place by the SEC.
Will we see a shift in top fund managers or will it primarily be unknown funds looking to advertise? Interested in hearing from others, specifically the the top dogs we have on WSO, on any changes their fund may make going forward.
It will be interesting to see how this plays out.
Source: http://finance.fortune.cnn.com/2013/07/10/sec-votes-to-let-hedge-funds-…
Law will definitely be bolstered by this. I don't think big hedge funds will start mass advertising. It will mostly be the smaller firms looking to expand their base that will advertise.
Not sure how advertising will help many HFs that much, being that the people that actually have the capital to invest in them will generally already know which funds are which. (at least have a general idea anyways)
I hope BabyDick Capital is reading this news.
I can't wait for SAC to start running commercials in between reruns of The Wonder Years. The top tier funds don't need to advertise but I could see some of the newer funds or lower tiered funds doing direct mailings to accredited investors. Should make for a new wave of ponzi schemes as some guy gets a hold of the members list at Winged Foot and starts soliciting old rich people looking for the next big thing.
Second life for Second Market.
OH GOOD... THAT DARN WALL STREET PREYING ON MORE INNOCENT OLD LADIES /s
Rule 506 offerings will continue to be open to accredited investors only, same as before, there's really no impact on who can buy into them. There may be however, an impression [or perceived stigma] of inferiority, real or not, associated with those who will advertise versus those who won't.
this while eu is doing something completely opposite to this haha
If a client of yours introduced you to a friend of theirs and you showed them a presentation that included your fund's returns, that could be considered advertising under the old rules. It was truly idiotic. This is long overdue. I don't think we're going to see tv ads for many (if any) hedge funds any time soon.
SirTrades,
If you are Yoda, I would like to meet you.
Humbly yours,
Blackstone isn't planning to advertise, according to Tony James.
Work for an ad agency. Everyone thinks of advertising as what you see on tv from P&G or Coke. However, we have the ability to target specifically by income, demographic and geography. Want to send a 3-drop direct mail piece to 'accredited investors'? It would be easy and would most certainly provide ROI.
this shit right here is crazy http://www.opalesque.com/industry-updates/3426/esma-finalises-superviso…
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