The next topic I want to touch on in our discussion of using the internet for your hedge fund is posting your fund information on one of the hedge fund databases. In my opinion there are many benefits, very little detriments, but I should disclaim, I of course am a little biased.
Databases increase your hedge fund's exposure to potential investors and facilitate capital raising with little to no cost for the exposure. Most databases don't charge funds to list. It does take an hour or so to get your listing up, and in order to keep your database listing current, you will need to send in returns and notify them of major changes in the fund, such as a change in service providers like administration or a change in the fundamental strategies.
Also, databases provide quantitative and qualitative measurements for your fund, once again, usually at no cost. You and potential investors will see statistics on your performance like Sharpe and Sortino ratios, and some hedge fund databases provide many different qualitative measurements.
Lastly, these qualitative and quantitative measurements allow you to easily analyze your fund's position with other similar funds. Members of the database, including you as a manager, will be able to rank funds with similar attributes, such as all hedge funds with less than $100 million in AUM that are taking long short positions in emerging markets.
There are a number of hedge fund databases online, and if you only have time to register for a few, you should choose the ones that are most well trafficked in my opinion to maximize your exposure. I have included the traffic rankings for the most popular hedge fund databases provided by Alexa.com, a third party traffic monitor.