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Are you really an expert?

24 October 2024

Why do so many hedge fund managers bamboozle investors with technical jargon and confusing charts? It’s because they believe investors equate intelligence with successful money management. Understandably, they want to demonstrate their intelligence.

Once an investor believes in your expertise, the next thing they will likely do is try to validate this. That inevitably involves visiting your website (and probably your LinkedIn profile). Let’s look at two scenarios:

Scenario one: You have numerous pieces of recent, quality content

In the first scenario, the investor receives immediate validation of their instincts, which rewards them with a rush of dopamine.

They feel good about themselves.

They feel good about you.

Buoyed with this confidence, they reach out to colleagues:

“I just met with X at FUND Y. Wow! They really know their stuff. Check out this article they wrote on subject Z”

What a great way to start a relationship!

Scenario two: No content

In the second scenario, the investor is left disappointed and frustrated. Why? Because there’s no evidence to support their instincts.

Unable to find the validation they’re searching for, there is less chance of a mention to their colleagues. They may even doubt their initial read of your expertise.

This is a clear example of how effective “content marketing” can improve the perception of your firm. And how the absence of it can damage this perception.

What is content marketing?

Content marketing is the distillation and distribution of knowledge. This can take various forms, including newsletters, blogs, email campaigns, webinars, videos, whitepapers, infographics, reviews, and case studies.

Rather than focusing on pitching your product, the content should be useful, relevant, and valuable – better yet, it should help solve problems your audience is facing.

What are the benefits?

  • Builds authority: Consistent, frequent, educational, and trustworthy content engages those already interested in your offering. Showcasing your knowledge and expertise leads to greater authority in the industry, particularly when your content is shared and linked.
  • Boosts SEO: Visibility is crucial in a competitive industry. It doesn’t matter how much money you’ve spent on a shiny new website if no one can find it…
    Successful content marketing improves SEO, leading to higher search rankings. And when you're more visible, your brand has greater exposure and engagement.
  • Attracts your true fans: Your content should act as a signal to the market, broadcasting who you are a perfect fit for. This helps attract your ideal customers.
  • Increases lead generation: Publishing the right content will generate leads. Even better, these leads will have already shown an interest in your thinking. That means they should be more receptive and responsive to your proposition.
  • Nurtures potential stakeholders: Effective content marketing targets your audience at every stage of their decision-making journey, including those that don’t need your services right now. As your audience moves along their path, your content marketing should foster positive emotions toward your firm, generating a feeling of inevitability that someone will choose you. This helps move the needle before important conversations have even taken place.
  • Strengthens relationships: Content marketing isn’t just about converting opportunities; it’s also about maintaining relationships and building brand loyalty. Doing this requires engaging and informing stakeholders through regular (but not irritatingly frequent) touchpoints.
  • Continues to work for you: Long after your content is published, people will still click, read, and share. This means it will continue to work for you, driving people to your website and social media pages.

And there are many other benefits…

Content marketing is an important influencing tool

Humans tend to prefer the biggest or most identifiable brands, and investors are human. Just look at the current trend of allocations flowing toward the most established investment firms.

Some managers understand this and are investing in their brands. Content marketing is a cost-efficient tool for this, delivering boosts in visibility, authority, loyalty, lead generation, and sales conversions.

So why are only a few benefitting? Next month, we’ll explore the hurdles (both real and perceived) that managers face and how to overcome them.

If you want to learn more about achieving an advantage in fundraising, recruiting, and other matters, contact our IR and Marketing team.

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