Better Hedge Funds Communications

Between skittish investors, a rapidly shrinking pool of prime brokers and knee-jerk (some argue counter-productive) regulation, this week was not a pleasant one to be a hedge fund. This year has already seen the highest number of redemptions on record and this looks only set to continue apace as Q4 approaches.

More than ever hedge fund managers, big and small, need to fully harness the power of communications to reassure investors, potential investors, counterparties, and their own teams. One thing that has become very clear over the past two weeks is just how potent and destructive the combination of rumor, misinformation and fear can be. In a world where even Goldman's future is called in to question nobody believes that ducking for cover and riding it out is a workable strategy any longer.

Hedge funds, individually and as an industry, need to get out in front of negative stories and speculation and to do this they need strong messages, a consistent story and a willingness to engage the market head on.