NEW YORK--(BUSINESS WIRE
)--Hedge Connection, a platform that has been putting hedge funds and investors together since 2005, has been granted a patent by the United States Patent and Trademark Office for their methodology of matching hedge funds and investors online. US Patent 8,468,078 was awarded to Hedge Connection's founders, Lisa Vioni and Rob Arthurs, as inventors of the matching methodology.
Hedge Connection's innovative approach to putting hedge funds and investors online was originally created to disintermediate placement agents and give hedge funds a less expensive option of accessing qualified investors.
As described in the abstract, the patent covers a "method for matching a hedge fund and a hedge fund investor, and apparatus therefore, may utilize databases that may be searched by search engines. The databases and the search engines may be accessed using a website. Information regarding the investor may be stored in one database and information relating to the hedge fund may be separately stored in the other database. An investor may access the search engine associated with the database containing hedge fund information to identify hedge funds that may be relevant to that investor. Likewise, a hedge fund may access the search engine associated with the database containing investor information to identify qualified investors that may be interested in the hedge fund." Complete patent can be read here.
The patent comes at a good time for Hedge Connection who is already preparing to take advantage of the newly changed laws regarding hedge fund advertising. On Monday September 23, the SEC officially lifted the 80-year ban on general solicitation. This means that hedge funds can now advertise and market to the public. While a manager still has to qualify the investor according to certain financial hurdles, they may contact investors and discuss their fund without having a pre-existing relationship.
"Now that the rules have been relaxed, an abundance of new and exciting ways have become available for connecting hedge funds and investors. The patent we received validates Hedge Connection as the first to invent an online platform for matching funds with investors, and we fully intend to integrate our methodology with the recent changes in the law," said founder Rob Arthurs. Ms Vioni, who has been an executive in the hedge fund industry since 1998, believes that the change of regulation will ultimately lead to more transparency. She says, "Hedge funds will no longer be able to hide behind the excuse that they cannot discuss certain topics because they risk losing their private placement status. There will be more competition for capital and subsequently this will raise the bar for all funds."
About Hedge Connection
Founded in 2005, Hedge Connection offers an interactive marketing platform for the alternative industry. The Hedge Connection fund database is powered by Morningstar and provides investors with access to 10,000 hedge funds, fund of funds and CTAs. Hedge Connection's industry leading Boardroom is an online community for building connections and learning from industry experts.