As good as they are at designing algorithms to guide their trading, hedge fund managers — in the main — have been slow to figure out the best uses of social media.
For example, just 9.9%, or 29, of 292 hedge fund firms running at least $1 billion have Twitter accounts, according to a review of the online activities of hedge fund managers by Peppercomm Inc., a New York-based public relations and market research firm.
Peppercomm found the average number of Twitter followers for all but the three largest multiasset-class managers on the list was 515 people. However, analysis showed that only seven hedge fund firms tweet new content at least 10 times per month with the vast majority of the remaining firms tweeting once per month or less.
LinkedIn use by hedge fund companies is better, with 188 firms hosting pages, but Peppercomm found very low usage, with only six firms posting updates and only four of those firms communicating with followers more than 10 times per month.
U.S.-based hedge funds are doing slightly better when it comes to creating an Internet presence with 91% or 87 of the 100 largest hedge fund companies hosting websites. But Peppercomm researchers noted in their recent report that a majority of large U.S. hedge funds — 55.2% — “have simplistic websites that provide little more than a logo.”
Not surprisingly, Peppercomm has provided on its website an online version of its “The JOBS ACT at Year One: A Changing Hedge Fund Communications Landscape.”