Forex Hedge Fund Marketing - Discussing a Forex Hedge Fund with Potential Investors
Forex managers who wish to market their hedge funds will have a variety of different options for their hedge fund marketing campaign. The manager may with to establish a forex website for his investors, submit the fund’s results to a forex database, and network with potential forex investors through various industry events. Any such marketing efforts will of course need to comply with the general “no soliciting” rules established in Rule 502 of Regulation D. This article will provide an overview for Forex managers when discussing their forex fund in a casual setting.
As a general principle, when a forex manager is talking to people about his job, he should not mention that he runs a hedge fund and should not mention the name of the fund. If the manager is asked about his profession, he should say that he works for a firm which is involved in forex trading. If the manager provides separately managed account services (through POAs), the manager can say that he manages forex accounts for individual investors. When meeting a person for the first time the manager can talk about the POA account business, but should not mention the fund until the manager has known the person for a period of time. During such period of time (a month or more is the safer amount of time) the manager will need to understand the person’s financial circumstances and investment objectives. After this period of time it might be ok to introduce such person to the forex hedge fund.
Of course the manager cannot stop his investors from discussing the fund with friends and family (although the manager should not encourage this). In the case a person is introduced to the manager and has previous knowledge of the fund, it would be wise for the manager to refrain from discussing the fund with the investor prior to the time that the manager has developed a sufficient relationship with the introduced person, presumably a month or so.
It also should be mentioned that the manager should not unilaterally begin a discussion about his hedge fund and it is a recommended best practice that the manager not discuss the fund’s returns to people who are not investors or potential investors, unless the discussion is part of the offering process (with all required forex hedge fund offering documents).
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