Sunday, 28 August 2016
Last updated 1 day ago
Oct 15 2013 | 12:42pm ET
Hedge funds are now free to advertise in the U.S., but those with any self-respect won't be putting up billboards anytime soon, according to industry players.
"The Goliaths in our industry are not going to advertise," SkyBridge Capital's Anthony Scaramucci told the Financial Times. "They think it is gauche and déclassé, and their partners already have their private planes and their beachside mansions in the Hamptons, so why disrupt the business model?"
The first firm to take advantage of the end of the 80-year-old ban on general solicitation last month is a small New York-based firm, ff Venture Capital, which on Friday publicly advertised for a new fund. And Scaramucci said that he won't hesitate to join ff.
"It presents an opportunity for the Davids to come in with their slingshot, and we are working on our message right now," Scaramucci, whose $8.6 billion firm might be counted among the industry's Goliaths, said. "If you choose the right weaponry, you can take our Goliath."
Others are less sanguine: A West Coast venture-capital firm had considered advertising, one of its partners told the FT, but eventually decided against it.