Warren Buffet’s most famous quote—one that’s been ringing in my head this past week—is simple: “Be greedy when others are fearful, and fearful when others are greedy.”
The markets are in turmoil. The Fed just cut a half a point almost in a panic. Some asset managers, SMBs, newer funds, and some pretty big names are having conversations about their P&L.
As the market struggles, even without redemptions, assets under management (AUM) are dropping. The industry has been drunk on market gains swelling their AUM (and therefore revenue) since shortly after the last crisis in 2009. The quest to win new AUM has been mostly half-hearted: keeping up with best practices has rarely been a serious priority in a consistently rising market.
Now is the time for strong firms with solid investment themes, as well as the investment process, to back them up to market heavily. Building trust and awareness, along with directly asking for new allocations, wins in times of uncertainty. This holds true across retail, advisor, and institutional channels.
Publish your best thought leadership, advertise your expertise, and express where you believe the markets will be in a year (and why).
Today we are living with great uncertainty. Think about it: the virus (followed by our government’s feeble initial response), a presidential election in need of clarity, global shifts, and a climate crisis, among other predicaments. There are also opportunities for innovation and advancement.
So is it time to panic and be fearful, or should we aim for rational thought and action? The answer is clearly your choice.
Running a systematic, data-driven investor acquisition agency, we think one way—rationally—with the objective of securing more market share for our clients, winning new AUM, and acquiring more customers. We know the clear path to accelerating our clients.
What’s your next move?