Top-5 Ways To Win Fund Manager Meetings?
The real testimony of any sell-side analyst’s capability is how she or he wins the fund manager (FM) meetings or calls. However, despite having solid fundamentals and in-depth knowledge of their markets, and industries, few analysts are able to handle it properly. However, the hard fact is that not many can handle it well despite strong fundamentals, domains, sectors, and market knowledge. And, it is evident from the fact that there are a handful of sell-side analysts that FMs like among a couple of 000s in the world! In the first five minutes, a wise fund manager will form an impression of the analyst!
Here are the top-five realistic strategies to win the fund manager meetings, stand out and gain the trust of FMs, as determined by my conversations with FMs and our clients in the investment management industry:
Break The Psychological Barrier:
The FM is aware that the analyst is here to promote or market new idea(s)! Hence, she or he has a negative bias against the analyst. This is a psychological barrier, in my opinion. Also, the analyst is swimming against the current if this bias is related to the sell-side firm. One needs to socialize with the FM by connecting on social media (LinkedIn!); clicking Like or/and commenting on her/his views, interviews, etc.; shaking hands at conferences; but buttering is a strict no-no. Connect with her/his rivals or, better yet, her/his first connections on LinkedIn; and best if they comment on your LinkedIn posts!
Homework Is Essential:
Study his/her career, profile, articles, preferences….almost everything that one can get hold of. Most importantly study FM’s portfolio, and sectoral/regional concentrations, because this will indicate his/her investment strategy or approach/ investment preferences/ risk appetite. Especially, study his/her relatively bad investment bets! Think of the alternative assets that he/she can invest in and get rid of these bad assets. Moreover, make sure to thoroughly consider your coverage in general and your recommendations in particular in light of his investment preferences and approach. Ask in advance if they would like to discuss anything particular – this will send a good gesture that you are focused on FM’s interest rather than self-interest. Moreover, make sure to thoroughly brush up on your coverage in general and your recommendations in particular in light of his investment preferences and approach. Ask in advance if they would like to discuss anything particular – this will send a good gesture that you are focused on FM’s interest rather than self-interest.
Showtime!
This is your chance to win the fund manager meeting – it’s showtime. I’d want to point out that the FM already has a negative bias towards you at this point. Hence it is best to refrain from pushing or selling anything. Yes! Your institutional sales director can pressure you to promote your ideas but resist the urge. Instead, concentrate on what FMs would like to hear. FMs are constantly interested in learning about global market trends, predictions for the future, opinions on current trends and events, perceptions of their competitors, and any industries or stocks that pique their attention. What FMs want most of all is to be heard! Discuss how he or she plans to get rid of some of the losing wagers. Don’t prolong out your discussion; the quicker it is, the better. Instead, offer suggestions or methods the FM can remedy the issue.
A Sell-Side Analyst Or Trusted Advisor?
Provide her/him with at least one sound investment recommendation to consider, in the meeting. Your candor in your conversation will provide the sense that you are a “Trusted Adviser” rather than a typical sell-side analyst.
Post-Meeting Follow-Ups Are The Key Game-Changers:
Often you will have some To-Dos from the meeting. Ensure that it is done within 72 hours (3 days). The FMs like efficient servicing by the sell-side. And the fastest one wins the race.
Years of disciplined practice will result in good ratings from fund managers and a credible reputation in the industry. Your standing in the international investing community will rise as a result. Such FM meetings would then be commonplace events.