War Stories Archive
Two firms with a similar investment style and comparable performance were competing for the attention of a prominent investment consulting firm. One firm, Company A, got to know the consulting firm in depth, meeting often with consultants as well as research analysts and becoming acquainted with the consultant’s strategic mindset and intellectual preferences. The other firm, Company B, paid a routine call on the consulting firm once a year, always visiting the same individual at the firm and always presenting a thoughtful update on Company B without reference to the consulting firm’s culture or mindset. When Company A was awarded signficant new assets in a search conducted by this consultant — a search in which Company B was not invited to participate — Company B chalked it up to the contrariness of consultants generally.
Moral: Consultants want more, better face time.