It looks like hedge funds aren’t quite as eager as the Kardashians to share their deepest darkest secrets on Twitter.
A new survey of nearly 100 hedge fund managers shows that they aren’t too keen on Twitter, and are even less fond of Facebook. But LinkedIn they like.
MHP Communications surveyed 77 hedge fund managers globally, each with at least $1 billion US in assets to manage.
And they are some serious Twitter detractors.
Only a paltry 1 percent of the 77 hedge fund managers surveyed said their hedge funds are active on Twitter.
The number rises – just a bit – when it comes to YouTube, with 3 percent having their own channel. And, sadly, not a single one said they had a Facebook wall.
But that’s not to say that these big money managers are ignoring all social media. 23 percent responded that they do, in fact, have an active presence on LinkedIn. And 92 percent of them have a corporate website.
It makes sense that this rich and powerful group would want to keep a low profile online. Reputation management is hard on Twitter, and they’re not exactly catering to the every-day consumer with the product, so I’m not sure they’d actually find much benefit to having an account. Plus, the legal implication of a single slip-up on a public network could be huge.
These findings make it all the more interesting to look at a hedge fund like Derwent Capital Markets, the “Twitter fund” that bases its investments on the sentiments of tweets. When contrasted to the otherwise mum voice that the rest of its industry has on Twitter, these guys are clearly part of the social media avant garde.
Still, I’m a little surprised that more of these hedge funds don’t have a Twitter presence at all. No one’s expecting them to start investing based on tweets, like Derwent, but even just a corporate account tweeting out news about the industry would be something.
What do you think? Should more hedge funds be on Twitter? Let us know in the comments below.