Can a hedge fund advertise on the Internet?
Historically, hedge funds have been prohibited from conducting any public offering by Rule 502(c) of Regulation D, which prohibited all forms of general solicitation and advertising. However, the JOBS Act is changing this long-standing regime to allow hedge funds to advertise via media which have traditionally been unavailable to hedge fund managers. Within the scope of the existing Regulation D rules, hedge fund managers can still maintain a web presence that has a public portion and a password-protected portion. Specific information about any hedge funds must be maintained behind password protection and access to the password-protected content must be limited to pre-screened investors whom the manager has determined to be “qualified.” A hedge fund manager’s website must not allow visitors to “self-certify” as “accredited investors” in order to gain access to the password-protected content.