Hedging Against Reputational Risk in the 21st Century

A perfect storm of uncertainty is hitting the financial world. The presidential election, dropping oil prices and an uncertain economy are leading to major market fluctuations, at the same time as managers are being hit with a record number of hedge fund liquidations. All of this means investors are looking at much more than a fund’s proof of performance – they are relying on its digital reputation, and their first impression is based on what they find online.

digital reputation management chartData reported by Hedge Fund Research shows that a record 700+ hedge funds shut down in 2015. However, total hedge fund assets during that time from $51.7 billion to a record $2.97 trillion.

With larger firms ($5 billion or more) still maintaining a healthy book of business, smaller firms still have an opportunity to bring in new business by proving themselves. Investors are doing their due diligence which often starts and ends with a Google search. Not only are firms being searched, but the executives that run the firms. Between 2014 and 2015, terms like ‘hedge fund manager’, ‘hedge fund’, ‘venture capital’, ‘CEO’ and ‘managing director’ increased between 25 and 50 percent. Managing the first page of search results for your fund and executives is critical.

The opportunity to manage and improve one’s online presence is greater than ever, as investors want to understand with who and into what they are putting their money. There are several approaches funds can take to boost and raise their online presence. Here’s a look at some of them:

  • Expand and open websites
  • Own social channels
  • Monitor for issues
  • Produce content

For more on this article, read it in its entirety at finalternatives.com.