Business Insider – It has been nearly a month since the JOBS Act allowed hedge funds to advertise, but so far there have been few takers. According to reporting by the FT, smaller “upstarts” have shown interest in advertising, but the larger, more established funds view advertising as sign of failure to raise capital.
Anthony Scaramucci, founder of Sky Bridge Capital, a fund of funds, tells the FT, “The Goliaths in our industry are not going to advertise… 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?”
Investment News also reported that advertising could draw regulatory attention to hedge funds, which are “notoriously private”. A fund that wants to advertise would need to notify the SEC and disclose its solicitation materials, which would expose them to the SEC’s scrutiny.