Fund Manager Mistake #6: Being too innovative

I recently teamed up with Matt Krause of Doppler Communications to record an interview series about the typical mistakes fund managers make when it comes to presenting their business. I've been in the fund management business for years and we mostly talk about all the mistakes I used to make myself.

You know the saying 'never let good failures go to waste' :-).

With Doppler Communications, Matt focuses on helping us improve our presentation skills.  I drop everything to read his emails because they always give me great insights.

In this series, we covered the 5 main mistakes fund managers make. Here's what we'll cover today:

 

Mistake #6

Mismatching your product design and your target investors

 

 

Summary:

Okay, let’s do one more. Think of it as a bonus mistake, #6 of 5: Mismatching your product design and your target investors. #6 is kind of related to the mistakes that came before it, especially to #5 (not qualifying your prospects). And, come to think of it, #2 (rushing your investor).

Say, for example, you come up with a synthetic way to reproduce a certain allocation. It’s cheaper to reproduce, but you still get the directionality.

For you, it’s exciting and intellectually stimulating. But as for your customers, maybe they haven’t even thought about it, and even if they have, it’s too complex for them to get comfortable with.

Qualifying will be especially important here. And don’t forget that the people you designed it for might not even be the right candidates. And when you do find the right candidates, don’t forget mistake #2 (rushing your investors) — you might have come up with the idea in a rush of inspiration at the airport, but your investors will probably need more time to get their heads around the idea.