Professor Ahmed Taha tells the Wall Street Journal much mutual-fund advertising already exploits the tendency of investors
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Wall Street Journal
April 17, 2012
Thanks to a little-noticed provision tucked into the just-signed jobs bill, hedge funds may soon be making a bold move into marketing—and the mainstream.
The JOBS Act, signed by President Obama on April 5, lifted a decades-old restriction on how hedge funds can go after new investors, clearing the way for managers to speak more publicly about their strategies and performance and even to advertise.
As private investment vehicles, hedge funds aren’t required to meet the same disclosure requirements and risk restrictions as ordinary mutual funds. In return, they may deal only with experienced, high-net-worth investors, and have long been banned from marketing themselves to the general public.
Read the full story here.