HEDGING YOUR FUND'S BETS



Public Relations, otherwise labeled Corporate Communications, has long been a key element in building long standing relationships and trust between an organization, its investors and the investment community at large.

Those professionals in the financial communications arena have, as of late, been called upon to manage the communication gateway for beleaguered hedge funds stricken by poor performance. Turning to a communications professional to “spin” control only during bad times is akin to buying auto insurance only after an accident.

Hedge funds have, for the most part, played their hands very quietly and close to the vest. Communication with prospective investors, and even with existing investors, has generally been uncoordinated with little regard for consistency. The extent of a communication strategy is often a tedious numbers report on performance.

Times are rapidly changing and communication strategies for hedge funds require that they “open the kimono” to both investors seeking to redeem funds and hedge funds looking to secure new funding opportunities in a bottomed out market.

The tool set available to communications professionals goes beyond the news release and occasional news conference dwelling on numbers. Today, the ability to keep investors informed in a transparent way must make use of digital strategies. Thoughtful communications delivered through a variety of channels to include secured e-mail, relevant social networks, webinars and mobile applications are just a few of the tools at hand to address the digital investor.

The investment world at large knows more about your business than you think they do. Instead of combating a seemingly losing battle on a playing field upon which you have limited experience, embrace a new, open communications strategy that is consistent in its performance and ability to withstand media scrutiny.

1 comment:

alex lucas said...

I think they were getting away with a lot of 'stuff' during the up-market, so they didn't want to open their kimonos......

Also, Bernie Madoff didn't.