How Should the Fund Be Marketed?
Interests in a hedge fund are generally sold pursuant to a private placement exemption and must be marketed very carefully, without using any general advertising or general solicitation. The manager should have a pre-existing relationship with everyone who is offered interests in the fund. Furthermore, to remain exempt from registration as an investment advisor at the state or federal level, a manager cannot hold himself out to the public as an investment advisor. Promotional activities involving websites and providing information to organizations that track hedge funds should not be engaged in without the advice of counsel.
