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Lifting Ad Ban Promises More Reach to Hedge-Fund Pitches

Investment pitches by entrepreneurs and hedge funds may get a higher public profile on television, through social media and even at sporting events following the lifting of an 80-year-old rule by U.S. securities regulators.

While yesterday’s vote by the Securities and Exchange Commission to end a ban on advertising for private offerings isn’t expected to spark an immediate deluge of mass-media marketing, funds will feel pressure to promote investments as competitors take advantage of the new freedom, according to securities lawyers. Some may experiment with low-cost venues such as social media while others may sponsor sporting events that attract wealthy investors.