Growing demand for niche managers
Peaks Strategies: Best PR & Communications Firm – In light of increasing market volatility and market dislocations, there continues to be a need and demand for more niche managers to find overlooked investment opportunities.
“Newer clients include those that are bringing niche investment strategies to the fold as investors continue to look for non-correlation and true sources of alpha,” comments Armel Leslie, Partner at Peaks Strategies, “We believe that the bulk of assets are no longer exclusively chasing the larger managers, and are by extension avoiding crowded trades.”
The firm is also seeing flow from fintech firms: “Clients include innovative data and analytics providers, deep-dive intelligence and risk management platforms and those providing blockchain-enabled efficiencies to capital markets.”
Although management firms are tightening their belts, there is still a voracious demand for any third- party service that can help managers extract alpha in an increasingly crowded space. In view of this, Leslie notes: “We continue to see a need for differentiation from those providing trading technologies and AI-enhanced data, analytics and analysis.
“Global spending on financial market data and news hit a record USD32.0 billion in 2019, according to ICAP, and while global banks and brokerages are a factor in that growth, hedge fund hunger for intelligence is stronger than ever.”
Peaks Strategies aims to capitalise on these opportunities and continue to grow. However, Leslie emphasises the need for managed growth: “We never want to sacrifice the top-tier, senior-driven service that forms the backbone of our firm.”
“We will continue to focus on diversified revenue streams driven by managers across many underlying strategies as well as the fintech players at the cutting edge of the industry. Most importantly, our focus will be on providing stellar service, remaining nimble, and delivering the business building results that clients have come to expect from us.”
One of the critical aspects of adapting to the new normal has been finding new, impactful ways for clients to communicate and stay top of mind with investors, prospects and stakeholders. This has had an effect on Peaks Strategies.
Leslie says: “Overall, this disruption is a net positive for us. Clients need strategic thinking, a consistent trove of content and optimal mediums to distribute and reach their core targets through owned, earned and paid channels.”
He also highlights the growing influence of ESG: “ESG is now an entrenched part of the mainstream and no longer on the fringes of asset management. There are so many interconnected variables that hedge funds need to think about, corporate governance and diversity and inclusion being just two examples of many.”
“Headline risk is real and can harm entrenched businesses. A recent report of a blue-chip alternative asset manager that has come under intense scrutiny due to dealings with Jeffrey Epstein is a notable case study. Lastly, in an election year, regardless of the outcome, there will be continued pressures on managers regarding taxes and if and how they are proportionately contributing to society.”
The financial services industry continues to struggle to break through the information overload. Coupled with the current inability to use the ‘traditional’ business development playbook, that challenge is magnified considerably. Peaks Strategies can provide assistance in various areas such as messaging, content development, media relations, and social media engagement to help clients overcome these challenges.
Partner, Peaks Strategies
Armel Leslie is a Partner at Peaks Strategies delivering integrated brand building campaigns for clients across traditional and alternative asset management and financial technology. Armel started his career with Tom Walek at Walek & Associates in 1999 where he rose to a Partner by the time of its sale to integrated PR/marketing agency Peppercomm in 2013, where Armel was Senior Director of Capital Markets. He was then a Senior Vice President at Sloane & Company, where he oversaw some of the firm’s financial services clients.