September 2010

Three Words By Which To Trade (Hint: Not “Buy—Sell--Hold”)

The ‘new normal’ financial professionals face in the post-Madoff era requires a rededication to three tenets of
excellence always a factor in success: passion, commitment, and virtuosity. To attain sustained success and be
positioned to grow a business, leaders must focus their passion, refine their commitment, and achieve virtuosity
in their chosen field. The rarefied atmosphere of successful money management and the intensified
examination of all industry players highlight the need to stand out in a positive way. It’s not enough to be good
enough at your job. To remain viable in money management, particularly in alternative assets, excellence has
become, in many ways, par performance.

1. Passion: He who stops being better stops being good. – Oliver Cromwell

Defined as a strong emotion, passion as applied in a business construct can be likened to zeal, or a strong,
enthusiastic devotion to an ideal and tireless diligence in its furtherance. Before one can convince others to join
in a passionate cause, a compelling case must be made for why. Managers who have this inherent drive to seek
value and to explore or construct the alpha-generating ideas and actions that lead to positive results are able to
convey this drive to others. They lead by example, but more importantly, they lead by ever-greater and farther-
reaching action. They do not settle for status quo when there is an opportunity to move forward. They are able
to turn their passion, or zeal, into successful opportunities and results. To illustrate this point, consider Ben &
Jerry’s ice cream. Founded in 1978 by two friends in a small town in Vermont, the company’s focus was
centered on the basis of providing a wholesome and natural dairy product that allowed the founders to create
socially conscious programs with a portion of their profits. The pair grew their business over 22 years to a
profitable and successful enterprise which attracted the attention of multinational food giant Unilever. In April
2000, Unilever announced its acquisition of Ben & Jerry’s and said it hoped to carry on the tradition of engaging
"in these critical, global economic and social missions." Passion turned into profit never tasted sweeter.

2. Commitment: Experience shows that success is due less to ability than to zeal. The winner is he who gives
himself to his work body and soul. -- Charles Buxton

Commitment is the act of binding oneself (intellectually or emotionally) to a course of action. It implies a
dedication to follow through and to continually monitor an action plan to ensure the chance of success.
Diane Harrison, Principal PH: 908.208.7296
Panegyric Marketing www.panegyricmarketing.com
41 Deer Creek Drive, Basking Ridge NJ 07920 E: dharrison@panegyricmarketing.com
 Three Words By Which To Trade (Hint: Not “Buy—Sell--Hold”)

It does not, however, imply success is a given. Failure, in many ways, can be a desired outcome within a course
of commitment. It can help to refine the chosen path of action by allowing the exploration of several options to
determine which will provide the likelihood of greatest success. The manner in which failure is incorporated
into a committed strategy can often define the overall success of a venture. This is the secret to refining
commitment in investment management. Knowing when to course-correct, when to forge ahead, and when
to retrench and reflect on the next step is all implicit in refining a passion into a commitment to succeed.

3. Virtuosity: Skill and confidence are an unconquered army. – George Herbert

Defined as a display of masterly or dazzling skill or technique in any field of activity, perhaps the clearest
examples of virtuosity can be found in sports. From a psychological as well as an economic perspective, a rags-
to-riches athlete demonstrates the power of excellence when passion, commitment and virtuosity combine to
yield fantastic results. Consider Tiger Woods, who, by virtue of being able to hit a tiny white ball with
uncommon skill to predetermined points on a golf course, has become a billion-dollar business unto himself,
personal travails notwithstanding. Another example is Roger Federer, a tennis virtuoso of talent and technique
when aiming a fuzzy green ball across a net to points within a series of white painted lines. Virtuosity is an
ineffable sense of completeness, an unbeatable combination of both skill and belief in oneself that enables an
individual to lift their performance in a chosen field to previously unachieved heights of accomplishment. It is
something to be viewed with admiration and awe when in full power. But, like all measures of artistry, it
depends upon a fickle emulsion of perceived and actual ability. Individuals achieving such results must first
believe in themselves in order to raise that performance bar. Belief in the cause can determine the effect.

The lesson learned for investment managers can be drawn: To achieve unparalleled success, one must
combine the drive and desire of a passion with the focus and resiliency of commitment and tie it all together
with an amalgamation of belief, skill and dedicated action. With these qualities working in tandem, greatness
can be achieved.

Panegyric is a Greek word meaning a formal and public expression of praise.

Panegyric Marketing is a specialized marketing communications firm providing a wide range of strategy
and writing services within the alternative assets sector. We provide over 20 years’ of expertise in
marketing, investor relations and communications, including establishing or refreshing hedge funds’
marketing identity, creating sales collateral, and all forms of client communications. With a flexible
approach and a wealth of experience, we collaborate with our financial partners to create superior
and meaningful deliverables.

Diane Harrison, Principal PH: 908.208.7296

Panegyric Marketing www.panegyricmarketing.com
41 Deer Creek Drive, Basking Ridge NJ 07920 E: dharrison@panegyricmarketing.com