Saturday, 28 May 2016
Last updated 8 hours ago
Feb 26 2014 | 11:51am ET
There has been little in the way of hedge fund advertising since an 80-year-old ban on the practice ended last year. But the rule change is having an effect on how hedge funds present themselves.
Under the Great Depression-era ban on general solicitation for private securities offerings, many hedge funds were reluctant to speak to the press, fearing that any comment could be perceived as a solicitation. Now, however, many prominent firms are adding public-relations specialists to run their communications strategies.
Among the hedge funds hiring such executives are Davidson Kempner Capital Management, Two Sigma Investment Management, Pine River Capital Management and Black River Asset Management, CNBC reports. Davidson Kempner brought on Lorie Coulombe last month and Two Sigma added Kelly Howard this month. Pine River and Black River both hired directors of communications last June: Steven Vames and Michael Tressel, respectively.
Even scandal-tarred SAC Capital Advisors boosted its communications team, hiring Mogolodi Bond in June.
According to CNBC, Baupost Group, AQR Capital Management and Highland Capital Management have also hired communications staffers since 2012, when the JOBS Act mandated that the Securities and Exchange Commission end the advertising ban.