People Invest with People!

Fund Manager: "You'd only be telling stories if your clients aren't good. If your clients were good, you'd be selling performance."


That'll never happen. Here's why.


Let's say you do pitch performance:


Marketing sends emails with performance updates in the subject line

Sales is leaving performance on voicemails

Investment team creates 20 charts showing how you beat your indexes, competitors, etc..


Fact sheets get redesigned

Pitchbooks a makeover

Vibe is " BAM " check out these numbers


Assume this works:


Some prospects email a few follow up data questions

Maybe a few want a quick check the box due diligence call

" BAM " they invest


You've figured it out!

Selling performance works (not)


And then


Markets take a turn....

Your asset class is under pressure

You make a mistake in your portfolio (never happens to the fund manager gods)

Performance is lagging all those indexes, peers, etc!


Marketing cancels emails

Sales is blamed for redemptions

Charts look like the market in 2008 / 2009... they need to be scrapped


Factsheets get redesigned

Pitchbooks as well

Vibe is.. we'll hide until performance is better


But what about those investors who bought your stats?

They are watching your stats daily

They aren't happy...


Maybe you get an email heads up

Maybe you get a quick phone call

" BAM " they all redeem, they're chasing performance only//


🔥 (of a different kind)


Moral of the story?

When you sell your good performance, some investors buy it

But those investors will sell your bad performance

Easy come, easy go


So, you can sell performance, all day long

Hey, it might work

Just be careful what you wish for


Then there's those that tell stories

they build relationships and rapport with the investors

Trust is given by the investor...



People invest with people

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