JOBS Act leads the way for hedge fund managers to speak out on strategy and structureApril 11, 2012
This post was written by Joe Anthony, President of Financial Services
Today’s topic on GThink: “Sidebar Measure in JOBS Act Opens Door for Hedge Funds to Tell Their Story to the Masses,” covered by Reuters
Abstract: On Thursday of last week, President Obama signed into law the Jumpstart Our Business Startups (JOBS) Act, a measure largely touted as a sign of support for small businesses and innovative companies. Tucked into the legislation is a change in the law governing how hedge funds can advertise and promote themselves. The Securities Act of 1933 made it impermissible for hedge funds to advertise, and now, nearly 80 years later, that barrier has been lifted.
The takeaway: The JOBS Act opens the door for hedge fund firms to explicitly publicize their funds. As a result, we expect to see more managers capitalize on this opportunity and engage the press. Household names like David Einhorn, Steven A. Cohen, and John Paulson will see more of their peers competing for face time with CNBC, Bloomberg TV, and The Wall Street Journal. Managers will be communicating their value and articulating their strategies, which can help hedge funds overcome the stigma of operating in the shadows of the investment business.
That’s what G thinks. What do you think?