Share Your Secret Sauce

by Dan Sondhelm

I often speak with fund managers about their investment strategies. When I probe them for further information, many are hesitant to describe their strategy more fully or share their "secret sauce."

I understand limiting the information, for example, when the fund manager comes from a firm with strong distribution capabilities because the fund sells itself. However, when you manage an undiscovered, hidden gem, smaller fund, that is looking to attract investors, you gotta talk.

There’s basically no downside to describing your investment strategy. Literally no one is going to drop everything and copy your strategy.

Advisors and investors are looking for repeatable processes that they understand. If you can explain how you manage money and how you are delivering strong investment results, you may have a client for life.

The media is also looking for a good story. If you have had mixed results, tell a deeper story that they can write about. The reprints will be worth it.