From the financial industry to the legal space there are certain verticals that are always slow to adapt, and it’s interesting to see how in recent times hedge funds are opening up to internet marketing ranging from SEO to social media as well as integrating social media analytics into their investment strategies. The times are truly changing.

Over the years we have guided a wide variety of financial institutions from early stage VCs to hedge funds with billions under management, and this post touches on some of the most common questions we get related to marketing hedge funds, which will hopefully shed more light on the topic and help your firms in the future.

Do hedge funds use social media marketing?
Hedge funds typically don’t use social media for marketing purposes with the intention of generating returns based on such, however the largest financial institutions in the world use social media for branding purposes (boosting awareness, mitigating online issues, etc.). Yes, social media marketing can be used for hedge funds though correlating a return will be almost non-existent, so don’t have high expectations there.

Is a social media marketing consultant for hedge funds worth it?
When it comes to launching new social media efforts whether you’re in the financial space or any other type of business, bringing in a social media consultant is worth its weight in gold because it’s better to have a clear strategy out of the gates (especially due to the potential liability) to ensure all of your bases are covered. That includes not only the outbound messaging but also knowing how to respond when something catastrophic happens – like negative mentions in major publications that spill over to social media. These are critical things to think about.

What is the importance of blog content for hedge funds?
As opposed to social media content that can go viral for either good or bad reasons out of nowhere, blog posts are very calculated and provide hedge funds with a platform to share their insights in a thoughtful way while also having the ability to easily modify them in the future within a few clicks. For example, a tweet is set in stone whereas a blog post provides information in the moment though it can always be revised easily.

What are the ways Search Engine Optimization (SEO) can help hedge funds?
Though SEO may seem like a mysterious creature that lives under your bed but is never seen, it’s really not that magical and results are attainable if you play your cards right. In particular, becoming a source of information as opposed to taking the mindset of “if I build it, they will come.” Unfortunately that’s not the case nowadays.

This is only a snapshot of our research around internet marketing for hedge funds and other financial institutions, and if you have questions around ways to win in the future let’s connect.