Hedge Funds and Advertising: âNo advertisingâ rules more confusing than ever

In the category of “Laws that Haven’t Caught Up with the 21st Century”, the internet aspects of the rules that prohibit hedge fund advisers from “advertising” may come in first place.  The SEC rules only allow hedge funds to be offered on a “private placement”  basis. This means no general solicitations are allowed.  While this is understandable in regard to some venues (think giant billboard in Times Square), when it comes to the internet, these rules may leave you scratching your head.