Tag Archives: freelance writer for business

Should hedge funds use social media?

Hedge fund industry expanding

As Hedge Fund Research recently detailed, hedge fund capital inflows are at a new record, with the total industry now managing $3.21 trillion in assets as of the end of 2017.

This growth is occurring in a context where, according to the Harvard Law School Forum on Corporate Governance and Financial Regulation, companies are devoting “considerable effort to creating and managing social media presences”.  Before social media existed, companies publicized investor-related information including earnings announcements by sending press releases to newswire services.  But with social media platforms, companies can now reach their audiences directly, particularly on Twitter, to reach their audiences in a cost and time efficient manner.

Social Media discussions about hedge funds expanding

But as Pepper Communications details in a blogpost, hedge funds have become hot topics on social media, while many funds have not yet adopted social media. Notably, Jacqueline Kolek, a Pepper Communications Partner explained that: “Every time hedge funds shy away from the social media conversation, they throw away important thought leadership and content opportunities for themselves and for the industry.”

What does an internet search reveal about your fund?

To adapt to the new social media environment, hedge funds should, as Pepper Communications details:

  • Assess your presence on the internet.  What does a Google search for your firm say about you?  Is it resulting in what you’d like to see?  Are you telling your own story – or are others?
  • Begin to monitor online discussions about the hedge fund industry. “Identify who among your peers and target audience is active online”.  If media, other hedge fund leaders, conference organizers and others of key importance to your industry are engaged online, determine where you might join this online conversation.
  • Identify and determine how to comply with any internal or external protocols or regulatory standards related to any online presence you consider adopting.

How to effectively adopt a hedge fund social media presence

Don Steinbrugge of Agecroft Partners explains in Hedgeweek that because the industry is so competitive, having a well-thought out strategy to harness the internet will advantage funds that properly undertake a presence.  Steinbrugge explains how an effective social media presence would help any hedge fund:

  • Identify, Enhance Knowledge, and Screen Investors
  • Improve probability of getting meetings with investors
  • Connecting with industry contacts
  • Posting information
  • Following people’s careers

While LinkedIn and Twitter are key platforms hedge funds can use to achieve these goals, perhaps the most challenging but effective effort to distinguish a fund involves developing a thought leadership position in the industry, as Diane Harrison details in Hedge Fund Insight.

As Aden Andrus – writing in Disrupting Advertising detailed – his corporate thought leadership initiative produced significantly higher organic traffic and 32 times more organic lead volume – over a two-year period.

Looking forward

As the hedge fund industry continues to grow and become more competitive, hedge funds should at least consider the possibility of developing a well-planned social media initiative as a component of their efforts to distinguish themselves.  While a social media presence is not essential for hedge funds — if properly designed and implemented — it could provide significant advantage.

For more information about creating content or managing social media focused on assisting a hedge fund?  Click here for more information or to arrange a discussion.

If there’s ever been a time to build your own audience for your company…it’s now

Frank Strong, writing recently in Sword and the Script Blog, details how traditional advertising and social media have become, except for the very well-funded brands – more difficult to utilize to promote companies.

Without well-researched, trustworthy written content, Strong explains, companies without deep budgets will have a hard time building an audience.

Crowded news and information markets makes building an audience difficult

As Strong details, the ad has been replaced by sponsored content. And social media channels are crowded with numerous brands, individuals and companies all vying for attention.  

At the same time — earned media coverage – the type most commonly driven by traditional public relations efforts to court journalists to write stories which might highlight a brand — is much more difficult to secure.  Why?  Because traditional media outlets will often select promoted content over traditional stories as a means to generate revenue.  And important for companies to keep in mind — trust in traditional media is waning, which is making earned media on traditional channels less appealing.

Strong calls this set of circumstances a “perfect storm” for companies seeking to generate awareness via both traditional news outlets and increasingly crowded social media channels.

Create your own initiative to build a loyal audience

To build an organic audience Strong recommends companies consistently create and publish content that is substantially different and passionate, utilizing case studies, white papers and webinars – as readers now consider them to be the most trustworthy forms of content.  

Patience required as this is a long-term strategy

Finally, he advises patience — as content production to support corporate goals – including sales – is a long-term strategy – whose full measure must be taken over time.

Need help with creating content or managing social media?  Click here for more information or to arrange a discussion.