Advertising for Hedge Funds

This was some interesting news as of late. The Securities and Exchange Commission voted to propose lifting a decades old ban as early as October on advertising for hedge funds. This would give hedge funds wide latitude on ensuring they are selling shares only to investors who are wealthy enough to participate in such deals. 

How can a hedge fund advertise? Who is a hedge funds target customer? Where is the most effective market for hedge fund advertising? These are great questions. Targeting investors that are wealthy enough, can be a difficult task in and of itself. I recently came upon a demographic study for the audience of the Florida Orchestra. The study was conducted by Genesis Direct. What struck me about this study was that it included subscribers, those that held a season ticket, and those that simply purchased a single ticket for an event.  Here are just some of the fascinating findings from the study.

39% of the subscribers had a net worth of $1,000,000 +

25% of the single ticket purchasers had a net worth of $1,000,000 +

The study also described certain “Super Niches” of the audience. One of those Super Niches was “Diamonds-To-Go”. Here is how this niche was described:

Representing about 5.7% of Niches Households, the ‘Diamonds to Go” group are mostly homeowners with high income values, white-collar families with children. They have an average income of $123,000, with the average age of head around 48. bIt seems they enjoy the good life, with having multiple credit cards, and have an interest in home furnishings, stocks, computers, gourmet cooking, gardening and travel.  

This was just one demographic study for an orchestra audience. The Florida Orchestra performs in Tampa, St. Petersburg and Clearwater. There are hundreds of and these audiences across the country and they contain the highest net worth individuals in the communities in which they perform. (We should know as we produce a large number of these organizations playbills.)

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I have the complete study in PDF format. For those that may have interest, feel free to email me korlowski@onstagepublications.com and I will be happy to share it.

I think what this SEC proposal will really open the flood gates, for marketing, as it did for attorneys in the 80’s. How to market a hedge fund. How to advertise a hedge fund. hedge fund advertising. hedge fund marketing.