ARK Global, LLC. Access + Research + Knowledge

A New Year And Market Volatility To Boot-WHAT THE MARKET NEEDS NOW

 

Like press coverage, some will say there is never a bad time to market.  We would argue, however, that marketing can be deployed in various ways, and that there are absolutely good times and bad times for certain content. Coming off of an extremely challenging fourth quarter, placing 2018 squarely in the history books, managers are left wondering what should they do to communicate effectively?

Here are some good rules for the road:

TIMELINESS WINS friends and creates opportunities. Managers often shy away from getting their numbers updated in databases, providing estimated results where applicable, and updating their core collateral, particularly if the news is poor. DO NOT WAIT. Get out early, regardless of the results, when the market is hungry for manager news and feedback. By being early, you have the ability to tell YOUR STORY in a way that matters to you and is in keeping with your commitment to solid communications. The results are not going to change, but you are more likely to be heard if you are active early following poor performance periods.

CONTEXT MATTERS, as does clear communications about the strategy’s market experience and its outcome. Perhaps you sailed through with flying colors (unlikely in Q4 2018 regardless of your asset class), perhaps you struggled mightily. Regardless, provide context with as much specificity as you can about what worked, what didn’t, what the team did to manage through the volatility and how you are positioned now.

LOOK AHEAD and provide the firm’s insights on what you see. What do people want coming out of a tough period? Hope! If its not there don’t sugar coat it. But if it is there, explain where and what the firm is doing to take advantage of the opportunities you see. Why should your strategy be a key consideration moving ahead? Why is this the right time? Managers will often quip “now we are on sale, this is the best time, we could do so much with more capital right now!” Of course that is the case, but providing more specifics on trends, sectors, industries and companies demonstrates a more distinct game plan.

HARD FACTS COUNT and research professionals prefer solid numbers to fluff.  Provide specifics regarding what is happening in the market. What did the strategy’s benchmark do? What specific analytics are meaningful to you and the strategy in evaluating the market and the strategy’s response to them? For example, did 89% of the Russell 2000 provide negative results for the year? Did tech have a major move? A few well-placed facts are meaningful for those seeking context.

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