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| Mary Kate Dubuss, Zach Kouwe and Stephanie Dressler of Dukas Public Relations |
Sunday, January 13, 2013
Hacks and Flacks - The Financial Follies 2012
Oaktree Sees a Bubble Brewing in the Debt Market
By Zach Kouwe
The always interesting Howard Marks of Oaktree Capital Management shares his latest thoughts on where we are in the market today. Hint: He is seeing a huge bubble brewing in the debt markets as investors reach for yield in junk bonds and accept larger risks in Treasuries. Marks is one of my favorite investment managers, primarily because he started a firm that invests in all sorts of complex financial instruments and works on behalf of large, sophisticated investors such as pension funds, but still finds a way to explain his thoughts in a way that can be easily understood by people with little background in finance.
Marks' public relations skills have enabled him to become a leading voice in the investment community. All he has to do now is get on social media and he can raise his profile even more. Sally Krawcheck, formerly of Merrill Lynch, has done this successfully as I mention in RIABiz. Thought leadership pieces like this one below are important for any company, no matter what industry, to demonstrate to the public their unique philosophies and position in the market.
The always interesting Howard Marks of Oaktree Capital Management shares his latest thoughts on where we are in the market today. Hint: He is seeing a huge bubble brewing in the debt markets as investors reach for yield in junk bonds and accept larger risks in Treasuries. Marks is one of my favorite investment managers, primarily because he started a firm that invests in all sorts of complex financial instruments and works on behalf of large, sophisticated investors such as pension funds, but still finds a way to explain his thoughts in a way that can be easily understood by people with little background in finance.
Marks' public relations skills have enabled him to become a leading voice in the investment community. All he has to do now is get on social media and he can raise his profile even more. Sally Krawcheck, formerly of Merrill Lynch, has done this successfully as I mention in RIABiz. Thought leadership pieces like this one below are important for any company, no matter what industry, to demonstrate to the public their unique philosophies and position in the market.
Sunday, September 9, 2012
Advertising Advice for Hedge Funds from the Mad Men
As the hedge fund market prepares to advertise and attract more of the general public into its previously exclusive arena, advertising experts are urging the sector to reveal more of its inner workings than most managers will at first feel comfortable with.
Madison Avenue executives are suggesting that hedge funds consider highlighting the ideas behind some of today’s advertising lingo: the funds should aim for “transparency,” “access” and “performance,” in contrast to the reputation the funds have now of exclusivity, secrecy and exclusion.
"They have to find a way to be more transparent," said Rob Reilly, chief creative officer of Crispin, Porter & Bogusky, a unit of MDC Partners Inc. "They need to be honest and show how the money is made and how their process works."
It may take some getting used to on the part of hedge fund managers, but in today’s world businesses cannot disclose too much, says Reilly. As an example he explained the advantages of a recent ad campaign by Dominos Pizza, Inc. The pizza company played on information that consumers were not so happy with the taste of the product, so the ad campaign promised a new and tastier recipe.
"Being quiet used to be seen as a competitive advantage, but Madoff changed that, and being unknown and unheard of is no longer acceptable," said Allen Adamson, a managing director at Landor Associates, a branding firm owned by WPP PLC.
Bernard Madoff changed attitudes about disclosure after he was caught masterminding a multi-billion-dollar Ponzi scheme. Madoff pleaded guilty and received a 150 year sentence in federal prison.
Mr. Reilly added that hedge funds drop the word “hedge” from their name, because of the negative connotations that word inspires.
"In advertising it's all about using words that sound solid," he said. "Words are everything."
Thursday, August 30, 2012
Hedge Funds Could Open Up After SEC Rule - Advertising?
By Zach Kouwe
Despite news reports earlier this month that the Securities and Exchange Commission was poised to delay important changes to marketing rules for hedge funds and other alternative investment funds, the S.E.C. published proposed rules yesterday that will have a significant impact on how hedge funds speak to the public and market themselves to prospective investors.
Both public relations professionals and reporters alike have quietly advocated for the loosening of these regulations, which have prevented hedge fund managers from talking publicly about their performance, investment strategies and even mentioning simple facts about their fund structure and fees. Now, if this new proposal becomes the law, more transparency will come to the hedge fund industry.
Dukas Public Relations, which prides itself on transparent and open relationships between its clients and the media, will be submitting a comment letter to the S.E.C. in support of the proposed rule. (Our letter will be available here and via the S.E.C.’s website soon.)
We believe this change will be welcomed by hedge fund reporters in particular, who often find it difficult to obtain simple information from hedge fund managers and the industry in general. Based on our conversations with clients and prospects, managers also support this change because most want to respond to reporters’ questions but fear running afoul of the rules. Even some managers who want to correct simple inaccuracies in the media can’t do so under the current regulations.
While some hedge funds and marketing execs have talked of full-fledged advertising campaigns, we believe most firms will opt to ramp up their public relations initiatives rather than buy ads in print publications or sponsor sp. While not opposed to advertising, we think engaging with the media and the public at large is the best way for the hedge fund industry to become more transparent and better understood. As a PR agency for hedge funds, we look forward to seeing this proposed rule become law.
Despite news reports earlier this month that the Securities and Exchange Commission was poised to delay important changes to marketing rules for hedge funds and other alternative investment funds, the S.E.C. published proposed rules yesterday that will have a significant impact on how hedge funds speak to the public and market themselves to prospective investors.
Both public relations professionals and reporters alike have quietly advocated for the loosening of these regulations, which have prevented hedge fund managers from talking publicly about their performance, investment strategies and even mentioning simple facts about their fund structure and fees. Now, if this new proposal becomes the law, more transparency will come to the hedge fund industry.
Dukas Public Relations, which prides itself on transparent and open relationships between its clients and the media, will be submitting a comment letter to the S.E.C. in support of the proposed rule. (Our letter will be available here and via the S.E.C.’s website soon.)
We believe this change will be welcomed by hedge fund reporters in particular, who often find it difficult to obtain simple information from hedge fund managers and the industry in general. Based on our conversations with clients and prospects, managers also support this change because most want to respond to reporters’ questions but fear running afoul of the rules. Even some managers who want to correct simple inaccuracies in the media can’t do so under the current regulations.
While some hedge funds and marketing execs have talked of full-fledged advertising campaigns, we believe most firms will opt to ramp up their public relations initiatives rather than buy ads in print publications or sponsor sp. While not opposed to advertising, we think engaging with the media and the public at large is the best way for the hedge fund industry to become more transparent and better understood. As a PR agency for hedge funds, we look forward to seeing this proposed rule become law.
Sunday, July 29, 2012
Should hedge funds engage in public relations?
Here's part of an interesting blog post by Richard Dukas, CEO of Dukas Public Relations, a financial PR firm in New York. It talks about hedge funds and other alternative investment firms beginning to open up to the media.
A recent article in the New York Times by Nelson Schwartz illustrates my point. Mark Lasry of Avenue Capital (not a client of Dukas Public Relations ) openly discusses his bet on a European turnaround. He talks about how much of his fund’s capital he’s investing, why and his return expectations. (On the same day, the Times ran a story about famed venture capitalist Marc Andreessen and his firm’s willingness to speak to the press despite being part of an industry that shuns it.)
Tuesday, June 12, 2012
Sunday, June 10, 2012
Sallie Krawcheck's Use of Social Media
By Zach Kouwe
I recently shared my views on former Merrill Lynch executive Sallie Krawcheck’s use of Twitter in an article in RIA Biz, an online publication targeted at Registered Investment Advisors. Many RIA’s and financial advisors have begun using social media to establish themselves as thought leaders in the investment community and land new clients. While there are risks, especially if you’re inexperienced with social media, it can be effective if done correctly. Krawcheck is certainly making good use of the medium.
From RIA Biz –
I recently shared my views on former Merrill Lynch executive Sallie Krawcheck’s use of Twitter in an article in RIA Biz, an online publication targeted at Registered Investment Advisors. Many RIA’s and financial advisors have begun using social media to establish themselves as thought leaders in the investment community and land new clients. While there are risks, especially if you’re inexperienced with social media, it can be effective if done correctly. Krawcheck is certainly making good use of the medium.
From RIA Biz –
“She’s always been known in the industry as a straight-shooter,” says Zach Kouwe, senior account executive for Dukas Public Relations, a New York-based financial PR firm. “She’s trying to re-establish her voice in the financial community. I wouldn’t be surprised to see her start her own financial advisory firm.” See: Six things to consider when reading Sallie Krawcheck’s comments in interviews.
“This is a great example of how social media, even in the very conservative financial space, can be used to get your message out there and establish yourself as a thought leader,” Kouwe says. “I think it’s a great move; I think she does it well.” See: Three ways to use social media in turbulent markets.
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