Can I post my hedge fund's returns on social media?
Friends & family · Video 3 of 8 · 0:35 ·
Not while you're raising money under Rule 506(b), which bars general solicitation: public posts, cold emails to bought lists, and open webinars about the fund. You can share market views; you can't pitch the fund to people you don't have a real relationship with. To advertise, use Rule 506(c), where every investor must be verified accredited.
Everything here is for educational purposes only and is not legal, tax or investment advice, or an offer to buy or sell any security. Laws and thresholds change and depend on your facts, so talk to a qualified attorney before acting.
Key facts
- Rule 506(b) does not allow general solicitation or advertising.
- Offers should go to people with whom you have a pre-existing, substantive relationship.
- General market commentary isn't an offer of the fund.
- Rule 506(c) allows general solicitation if every purchaser is verified accredited.
Transcript
Founder: Up 40% this year. This post is going to go viral.
Operator: Quick question before you hit post. Are you raising money right now?
Founder: ...Maybe?
Operator: Then that post can count as general solicitation. And 506(b) doesn't allow it.
Operator: Same for cold emails to bought lists, and open webinars about the fund.
Founder: So I can't say anything?
Operator: You can talk markets. Your views, your thinking. What you can't do is pitch the fund to people you don't have a real relationship with.
Founder: And if I really want to post?
Operator: That's 506(c). You can advertise, but every investor has to be verified accredited.
Founder: So, about my viral post...