Category Archives: Business Issues

Hedge Fund Events November 2013

The following are various hedge fund events happening this month. Please contact us if you would like to add your event to this list.

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November 4

November 4

November 4

November 4-5

November 4-6

November 5

November 5-6

November 5-7

November 6

November 6

  • Sponsor: Mankoff & Co.
  • Event: Fireside Chat
  • Location: Chicago, IL

November 6

November 6

November 6

November 6-7

November 7

November 7

November 7

November 7

November 7

November 7-8

November 11

November 11-12

November 12

November 12

November 13

November 13-14

November 14

November 14

November 19

November 19

November 19-20

November 19-20

November 19-22

November 20

November 20

November 20

November 20

November 20-21

November 21

November 21

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Cole-Frieman & Mallon LLP provides legal services for hedge fund managers and other groups within the investment management industry. Bart Mallon can be reached directly at 415-868-5345.

Hedge Fund Events October 2013

The following are various hedge fund events happening this month. Please contact us if you would like to add your event to this list.

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September 30 – October 1

October 1

October 1

October 1-2

October 1-3

October 2

October 2

October 2

October 2

October 3

October 3

October 3

October 7-9

October 7-9

October 8

October 8

October 8-9

October 8-9

October 9

October 9

October 9

October 9

  • Sponsor: Hedgefundnetworking.com
  • Event: Networking Event
  • Location: Chicago, IL

October 9-11

October 9-11

October 10

October 10

October 10

October 10

October 10

October 10

October 15

October 15-16

October 15-17

October 16

October 17

October 17

October 17

October 17

October 17-18

October 17-18

October 17-18

October 17-18

October 22

October 22

October 22

October 22

October 22-23

October 22-23

October 23

October 23

October 23

October 23-24

October 23-25

October 24

October 24

October 24-25

October 24-25

October 24-25

October 24-25

October 28

October 28-29

October 28-30

October 28-31

October 29-30

October 30

October 31-November 1

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Cole-Frieman & Mallon LLP provides legal services for hedge fund managers and other groups within the investment management industry. Bart Mallon can be reached directly at 415-868-5345.

Hedge Fund Events September 2013

The following are various hedge fund events happening this month. Please contact us if you would like to add your event to this list.

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September 9

September 9-10

September 9-10

September 10-11

September 10-11

September 11

September 11

September 12

September 12

September 12

September 12

September 12

September 12

September 12

September 15-17

September 16-17

September 17

September 18

September 19

September 19

September 22-24

September 23

September 23

September 23-25

September 24

September 24-25

September 25

September 25-26

September 25-27

September 25-27

September 26

September 26

September 26-27

September 27

September 29- October 2

September 30

September 30- October 1

September 30- October 1

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Cole-Frieman & Mallon LLP provides legal services for hedge fund managers and other groups within the investment management industry. Bart Mallon can be reached directly at 415-868-5345.

Hedge Fund Events August 2013

The following are various hedge fund events happening this month. Please contact us if you would like to add your event to this list.

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July 31- August 1

August 3

August 3

August 6

August 8

August 10

August 11-14

August 14

August 17

August 17

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Cole-Frieman & Mallon LLP provides legal services for hedge fund managers and other groups within the investment management industry. Bart Mallon can be reached directly at 415-868-5345.

JOBS Act Proposed Regulations Passed

Fund Managers Allowed to Advertise According to New Rules

Additional Regulations Proposed by SEC

The long-awaited JOBS Act proposed regulations which will allow private fund managers to generally solicit investors for a private fund offering were finalized today.  In addition, the SEC proposed additional regulations with respect to offerings in which there has been a general solicitation.

We will be able to provide more detailed information on these developments over the coming days, but for now the following links provide helpful information:

  • SEC Adopting Release – Release No. 33-9415; No. 34-69959; No. IA-3624; File No. S7-07-12RIN 3235-AL34; Eliminating the Prohibition Against General Solicitation and General Advertising in Rule 506 and Rule 144A Offerings
  • SEC Proposing Release – Release No. 33-9416; Release No. 34-69960; Release No. IC-30595; File No. S7-06-13 RIN 3235-AL46;Amendments to Regulation D, Form D and Rule 156 under the Securities Act
  • JOBS Act Ban on General Solicitation Lifted for Fund Managers – blog post from Sansome Strategies (compliance firm)

Below is some direct language from the adopting and proposed releases.  Please contact us if you have questions on the releases or how they may relate to a proposed offering.

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Adopting Release (regulation effective 60 days after publishing in Federal Register)

SEC Summary:

The amendment to Rule 506 permits an issuer to engage in general solicitation or general advertising in offering and selling securities pursuant to Rule 506, provided that all purchasers of the securities are accredited investors and the issuer takesreasonable steps to verify thatsuch purchasers are accredited investors. The amendment to Rule 506 also includes a non-exclusive list of methods that issuers may use to satisfy the verification requirement for purchasers who are natural persons. … We are also revising Form D to require issuers to indicate whether they are relying on the provision that permits general solicitation or general advertising in a Rule 506 offering.

New Regulation 506(c)(2)(ii) will read as follows:

The issuer shall take reasonable steps to verify that purchasers of securities sold in any offering under paragraph (c) of this section are accredited investors. The issuer shall be deemed to take reasonable steps to verify if the issuer uses, at its option, one of the following non-exclusive and nonmandatory methods of verifying that a natural person who purchases securities in such offering is an accredited investor; provided, however, that the issuer does not have knowledge that such person is not an accredited investor:

(A) In regard to whether the purchaser is an accredited investor on the basis of income, reviewing any Internal Revenue Service form that reports the purchaser’s income for the two most recent years(including, but not limited to, Form W-2, Form 1099, Schedule K-1 to Form 1065, and Form 1040) and obtaining a written representation from the purchaser that he or she has a reasonable expectation of reaching the income level necessary to qualify as an accredited investor during the current year;

(B) In regard to whether the purchaser is an accredited investor on the basis of net worth, reviewing one or more of the following types of documentation dated within the prior three months and obtaining a written representation from the purchaser that all liabilities necessary to make a determination of net worth have been disclosed:

(1) With respect to assets: bank statements, brokerage statements and other statements of securities holdings, certificates of deposit, tax assessments, and appraisal reports issued by independent third parties; and

(2) With respect to liabilities: a consumer report from at least one of the nationwide consumer reporting agencies; or

(C) …

(D) In regard to any person who purchased securities in an issuer’s Rule 506(b) offering as an accredited investor prior to the effective date of paragraph (c) of this section and continues to hold such securities, for the same issuer’s Rule 506(c) offering, obtaining a certification by such person at the time of sale that he or she qualifies as an accredited investor.

New Regulation Proposal Release (comment period open for 60 days)

SEC Summary:

… the[se] proposed amendments to Regulation D would require the filing of a Form D in Rule 506(c) offerings before the issuer engages in general solicitation; require the filing of a closing amendment to Form D after the termination of any Rule 506 offering; require written general solicitation materials used in Rule 506(c) offerings to include certain legends and other disclosures; require the submission, on a temporary basis, of written general solicitation materials used in Rule 506(c) offerings to the Commission; and disqualify an issuer from relying on Rule 506 for one year for future offerings if the issuer, or any predecessor or affiliate of the issuer, did not comply, within the last five years, with Form D filing requirements in a Rule 506 offering. The proposed amendmentsto Form D would require an issuer to include additional information about offerings conducted in reliance on Regulation D. Finally, the proposed amendments to Rule 156 would extend the antifraud guidance contained in the rule to the sales literature of private funds.

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Cole-Frieman & Mallon LLP is a boutique law firm focused on providing legal services to private fund managers.  Bart Mallon can be reached directly at 415-868-5345.

Hedge Fund Advertising After SEC JOBS Act Vote

One of the most anticipated votes for the hedge fund industry is happening today when the SEC votes on the JOBS Act implementing regulations (for information on the proposed changes, please click here).  Presumably the SEC will allow certain private fund managers to generally solicit which means that managers will have expanded options when it comes to advertising.  This is expected to create a new category of service providers to fund managers seeking to maximize visibility.

We will of course continue to provide information on the new regulations as soon as they are released.  Below is a guest post from Mark Macias which highlights certain marketing strategies that managers might want to consider after the JOBS Act vote.

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How to Prepare for the Anticipated SEC Changes on Hedge Fund Advertising
By Mark M. Macias

Most hedge funds, private equity groups and venture capitalists will be at a disadvantage when the SEC lifts the prohibition on general solicitation, which is expected to occur in 2013. The decades-old marketing ban has prevented many financial groups from developing an online infrastructure that is crucial to marketing a service to investors.

Marketing a fund with the media is drastically different than marketing a product to the public. Credibility must be established from the start before the media will even consider putting your portfolio manager on TV or quoting him as a financial expert. He may manage a $100 million portfolio, but the media is not going to take his word for it without seeing evidence of his expertise. This is why it’s so crucial for all funds to establish credibility now with a strong online presence before the new proposed SEC rules on advertising go into effect.

Here are some marketing strategies your fund should consider as it undergoes an online marketing and media campaign to reach new investors.

First – the media. Credibility matters in life, but it especially matters for journalists. Whenever a portfolio manager is pitched as an expert to the media, journalists will quietly and overtly measure his expertise, integrity and experience in the financial industry. Journalists will want to see proof on why this portfolio manager should be the best expert to add color to the market.

This is why your fund needs to establish a website now to start building credibility in the online world. If a reporter doesn’t see an online presence on your fund, credibility questions will be raised. This doesn’t mean you won’t succeed with a media placement, but it will be a much harder story sell to the media if you can’t support or show why your fund manager is an expert. You can establish credibility quickly by writing editorials on the market and submitting them to influential business news sites, like the Huffington Post, Business Insider, trade magazines, etc. Writing a book on your industry will also give you another avenue to position yourself as an expert.  Here are a few credibility questions you should be able to address and answer before your fund pursues media placements.

  • What makes you qualified to speak on this topic?
  • How many years of experience have you spent in the industry?
  • How big is your fund in comparison to others?
  • What part of your daily routine is spent reinforcing your expertise?
  • What do you know as an insider that other investors would want to know?

Once you establish credibility, how do you get the media’s attention? How do the news producers and newspaper editors decide what to print and publish? Most people ask this question like there is a magical formula that scientifically reveals whether a story should be pursed or scrapped. If it were this easy to identify news stories, you can bet the formula would have been hacked and posted on the Internet by now. The fact is news selection is an art and just like any other profession, involving creativity, opinions and experiences, it is subjective to where you stand.

News is a public service, which means your story must provide a service to the public. It sounds simplistic, but many people don’t grasp that concept. They assume the media is entitled to do feature stories on the public in the name of public service. No, the media is entitled to do stories that benefit and help the public with information that is relevant today. And in today’s saturated media market where ratings and unique viewers drive advertising rates, a story idea will have a better chance of getting picked up by the media if it has an inherent tease value. In essence, this is a story that draws readers in because they are intrigued.

One of the biggest factors that will decide whether a story makes the evening news or morning newspapers involves timeliness. News is from the root “new,” which means you must find a new and unique element to pitch if you expect the media to pursue a story on you or your fund. If your story is old news, then you need to find a new way to spin it by finding an angle that is tied to a timely matter. For example, if you are a Middle East fund, trying to get publicity in the US, tie your fund to a current event. Currently, there are protests throughout Turkey and Egypt. What are these protests doing to the stock market in those countries? How will a new leader in those countries impact the economic stability? How is the (local) currency market reacting on the international stage? Those are all questions you can pose to position your portfolio manager as an expert and in a timely manner. Here are a few questions to help you discover a newsworthy angle for your fund.

  • What is different about my fund? How does this personally relate to investors reading this publication? The more you can define it, the better your chances for a successful media placement.
  • How does my fund impacted by international events?
  • What is the timely element with my fund?
  • Is there a personal story to tell about my fund, like maybe the portfolio manager has overcome a personal obstacle or has survived through several decades of difficult financial times? What can we learn from this portfolio manager?
  • Is there a new trend arising in my field that will affect the pocket books of consumers? For example, is the rising cost of wheat starting to put a damper on profits for bagel shop or Italian restaurant owners? Will my business soon be forced to raise prices on the menus because the price of wheat keeps rising?
  • Does your fund have a direct impact on technology, materials or energy, reshaping the future? If so, what is that innovation and how will it change lives? What trend is it leading?

Finding a unique angle is not as difficult as it may sound. You just need to open your mind to timely events that impact and influence your fund. If your fund is geared towards a niche audience, like cyber security, scan the headlines in the business sections of various newspapers for possible tie-ins to current events.

ABOUT THE AUTHOR
The founder of MACIASPR, Mark M. Macias, has worked inside the newsrooms of NBC, CBS, KTVK, the Arizona Republic and King World Productions. As the Executive Producer with WNBC in New York, Macias approved and vetted story ideas from publicists, reporters, producers and viewers. He was also Executive Producer for a national business show that was syndicated by NBC. You can read more on his PR Firm at www.MaciasPR.com.

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Cole-Frieman & Mallon LLP is a boutique law firm focused on the investment management industry.  Bart Mallon can be reached directly at 415-868-5345.

Hedge Fund Events July 2013

The following are various hedge fund events happening this month. Please email us if you would like us to add your event to this list.

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July 2

July 8-9

July 8-10

July 9

July 10

July 11

July 11

July 16

July 17

July 17

July 18

July 18

July 20

July 21

July 22-23

July 22-24

July 22-24

July 22-24

July 22-24

July 24

July 24

July 25-26

July 30-31

July 31-August 1

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Cole-Frieman & Mallon LLP provides legal services for hedge fund managers and other groups within the investment management industry. Bart Mallon can be reached directly at 415-868-5345.

Hedge Fund Events June 2013

The following are various hedge fund events happening this month. Please email us if you would like us to add your event to this list.

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June 2-4

June 3

June 3-6

June 4

June 4-5

June 5

June 5

June 5

June 5-6

June 6

June 10

June 10

June 10-11

June 10-11

June 10-11

June 11

June 11-12

  • Sponsor: IBF
  • Event: Venture 2013
  • Location: San Francisco, Ca

June 11-12

June 12

June 12

June 12

June 13

June 13-14

June 13-14

June 17

June 17

June 17

June 17-18

June 17-18

June 17-21

June 18

June 18

June 18

June 18-19

June 19

June 19

June 19

June 19-20

June 20

June 20-21

June 20-21

June 24

June 24-25

June 24-25

June 24-25

June 25

June 25

June 25-26

June 27

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Cole-Frieman & Mallon LLP provides legal services for hedge fund managers and other groups within the investment management industry. Bart Mallon can be reached directly at 415-868-5345.

Hedge Fund Events May 2013

The following are various hedge fund events happening this month. Please email us if you would like us to add your event to this list.

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May 1-3

May 6-7

May 7-8

May 7-8

May 7-10

  • Sponsor: SkyBridge Capital
  • Event: SALT 2013
  • Location: Las Vegas, NV

May 8

May 9

May 13

  • Sponsor: Deal Flow Media
  • Event: SPACs
  • Location: New York, NY

May 13-15

May 14

May 14

May 14-15

May 15

May 15

May 15

May 15

May 15-16

May 15-17

May 16

May 16

May 16

May 16-17

May 16-17

May 20

May 20-21

May 22

May 22

May 22-23

May 23

  • Sponsor: 100WHF
  • Event: Spring Fling
  • Location: San Francisco, CA

May 29-30

May 29-31

May 30

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Cole-Frieman & Mallon LLP provides legal services for hedge fund managers and other groups within the investment management industry. Bart Mallon can be reached directly at 415-868-5345.

Hedge Fund Events April 2013

The following are various hedge fund events happening this month. Please email us if you would like us to add your event to this list.

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April 3

April 3-4

April 4

April 8-10

April 9

April 9

April 10

April 10-11

April 10-12

April 15-17

April 16

April 16

April 16-18

April 17

April 17

April 17-19

April 18

April 18

April 22

April 22

April 22-23

April 23

April 24

April 24

April 25

April 25-26

April 28-May 1

April 29-May 1

April 30

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Cole-Frieman & Mallon LLP provides legal services for hedge fund managers and other groups within the investment management industry. Bart Mallon can be reached directly at 415-868-5345.