The ban on advertising hedge funds has been lifted since September, so why are only a few obscure funds taking advantage of the opportunity? It appears to be a combination of three main reasons. First, many funds view the in-ad disclosures required are too onerous to bother with advertising. Second, broadcast advertising is not an effective method for reaching the wealthy families and institutional clients where the real profits are to be made. Third, funds fear that advertising would carry a whiff of desperation, and thus be actively counterproductive. It appears that a few funds are trying some unconventional advertising methods, but when it comes to conventional print and broadcast ads, everyone seems to be waiting for others to make the first move.

Read the full article here:
Why Aren’t Hedge Funds Advertising? – New Yorker (blog)