Almost everyone educated in U.S. public schools is familiar with show and tell, and the practice is demonstrative of an important marketing concept, one that is effective in countering an intrinsic aspect of human nature…skepticism.
Each of us has had the experience of being pitched for a new product, unique design, or innovative solution and each of us instinctively reacts by saying out loud or to one’s self ― show me! The same reaction occurs when one is showered with platitudes regarding the honesty and integrity of the individual, firm or company offering the pitch ― skepticism.
Broadly speaking,potential investors react just as you would.
Facts speak Loudest
Clearly, when marketing a hedge fund to potential investors, skepticism is something to be avoided. Accomplish this by eliminating self-serving talking points, self-aggrandizing adjectives, and exalted nouns to describe the fund’s merits. Instead, provide facts because facts show investors how good your firm is, while telling them, however true it may be, can often sound clichéd, giving rise to the very skepticism you are trying to avoid.
Speak about processes, strategies, and objective results, allowing the potential investor to come to his own conclusions.
Facts Can Differentiate Your Firm
Endeavor to demonstrate the value of your firm by presenting facts that separate you from the competition. By way of example, you might introduce your potential investor to the special method your firm is using to exploit a little known or unknown investment opportunity. Alternatively, you could reveal a catalyst in your firm’s tool box that enhances performance.
Tell Your Story with Facts
Presenting factual information in a manner that tells a convincing story is superior to offering random facts that jump around in an in-cohesive fashion. It is important to connect the dots for investors by presenting facts in an orderly and engaging manner that builds interest and results in a cohesive narrative. Never underestimate the power of a good story.
Insightful thoughts in concert with persuasive facts will positively enhance the perception of your firm and further set you apart from the competition. Unique insights regarding strategy, fresh points-of-view, and provocative, but perceptive thoughts expressed in communications and presentations can frame your firm as a thought leader, which can be a powerful expression of your firm’s superiority to the competition.
While it is to be avoided whenever possible, the use of the occasional promotional phrase or headline is permissible, as long as unsubstantiated talking points are held in check. Positive and compelling introductions to substantiated facts and unique insights, help with your firm’s story and connects the dots for your investors.
Information that highlights and illuminates investment strategy and properly supports the investment advantage claimed for the firm with hard fact, is always superior to hackneyed clichés. This, in combination with managerial insights that establish a thought-leadership persona represent the best methods for establishing your firm as a cut above the competition.
Strive to see things from the potential investor’s perspective. Investors do not think differently from you and they are equally deserving of respect.