On April 28, 2021, 3PM held a Regulatory Update for its members with guest speaker Lisa Roth from Monahan and Roth. The discussion centered on some recent regulatory updates 3PM members should be aware of.
One of the more difficult adjustments in the past year has been in the way that asset managers communicate with clients and prospects. In 2020, asset managers had to adapt to a world where social gathering was limited. Face-to-face meetings were not an option. Zoom, once a technological curiosity, became an essential communication tool.
Read MoreIf you are an investment manager, you know that growing your assets and revenues is harder than it used to be. Working in a “virtual” environment is yet another challenge for smaller managers looking to get attention and successfully navigate through the due diligence process. Unlike the era of expanding defined benefit plans, today, most institutional investor portfolios are fully invested. At the same time, a shrinking number of investment consulting firms and an exponentially larger universe of attractive investment strategies have combined to create a fiercely competitive marketplace for the fewer opportunities that do arise.
Read MoreA global recession. Stay-at-home orders affecting billions of people worldwide. The most job losses since the Great Depression. Entire industries teetering on bankruptcy. And the end of the decade-long bull market.
In the first part of the this article we discussed the three roadblocks emerging managers face in light of the consolidation that has occurred in the consultant community.
They are:
Roadblock #1: Mergers Delay Manager Search Activity
Roadblock #2: Growing Bias Toward Multi-Strategy Firms.
Roadblock #3: More Competition for a Smaller Piece of a Shrinking Pie
So, What’s Next?
Read MoreThese are challenging times indeed. Many of us would like to run and hide, but this is not the time. Entering the second quarter of 2020, pleased to put Q1 behind us, we debate openly how best to 'help' and where to focus our resources. It might still be too soon for general marketing webinars (we believe this is the case). As recipients ourselves, we know that the market is bombarded with electronic communications and we all have more immediate needs at this time than a new sales pitch. In fact, permanent damage may be done by firms who consider this a ‘great time’ to push hard on the marketing front.
Read More
3 Ways Consolidation in the Consultant Industry Creates Roadblocks for Emerging Managers
Headwind: noun, a wind blowing from directly in front, opposing forward motion.
A new year represents different things to different people in the investment management business. For our firm, after 25 years in the third-party marketing industry, it means our phones are ringing with inquiries from money managers who are re-assessing their current sales, marketing and distribution efforts, looking for advice and opportunity.
Read MoreTruth be told, smaller and newer hedge or private equity funds have never been known for their marketing prowess. In fact, most of these managers have purposely avoided marketing their firms, choosing instead to let their strategy and performance speak for themselves. Smaller hedge or private equity funds have additional challenges that are turn-offs to investors such as their manager’s short track records, not enough assets and limited reputations.
Clearly, the asset management industry is undergoing a major transformation. Technological advances and the democratization of investing has virtually commoditized asset management to the detriment of advisors that continue to languish in brand obscurity. Unless a portfolio manager has already attained “rock star” status, which relatively few do or maintain, most firms struggle to gain the attention of new clients or keep the attention of existing clients. Of course, not every portfolio manager can become a rock star. But anyone can navigate towards becoming more visible, more respected and more influential. When your opinions really matter, you’ve arrived.