As a hedge fund manager, you already know how your investment process, your track record and all the other ways your approach to managing money is different from other managers. But just knowing all that isn’t enough to build trust with investors and allocators.
What builds trust is your brand, especially when you’re an emerging manager looking to successfully launch a new fund.
A recent Forbes article, in speaking about new businesses, said that, “For new businesses, reputation is everything. Without a prior track record to go off of, your customers are relying on your word alone that you will deliver on what you’re promising them. With so much on the line, it is critical that you instill a sense of trust.”
One of the key tips offered up in the Forbes article is to speak with an authentic, relatable voice to your consumers – in this case, investors and allocators.
Hedge fund managers tend to be very good at managing money, but aren’t always the best at speaking in an authentic, relatable voice. Most managers would greatly benefit from working with professional financial writers and financial services branding agencies to tell the best-possible story.
Offer a consistent experience
It’s also important to build brand equity, which occurs when you consistently deliver a positive experience. As a hedge fund manager, your track record at your current and past firms helps build your story and brand.
In your case, your performance numbers will pretty much tell investors what the experience of working with you was like. But it’s important you are able show those numbers in the right way and in the right places – as well as telling people how you achieved those numbers – to ensure you get maximum mileage out of your track record.
Provide value beyond managing money
One great approach is to offer value-added content that isn’t just about you and your fund. In the case of your newsletter, website, blog, social media activity, etc., you should think about providing content that speaks to more than just your investment approach or how the macroeconomic environment is impacting your holdings.
You want to give people information that matters to them, while also letting them know the types of actions they can take to improve their personal, professional and financial circumstances.
It’s important you instill a sense of trust, right out of the gate. And trust is what your brand is built on.