Tailoring investor engagement By Swaroopa Desai and Armando Lopez from Cowen
Changes across the business landscape continue to impact corporate messaging – with a greater need for personalization – from the content of the message to how it’s delivered.
We’re seeing more demand for bespoke IR messaging, as well as the tools to reach the investor community. As a result, there is greater flexibility in tailoring engagement to better fit the strategies/ goals of each company and the shareholder base.
At Cowen, taking a personalized approach means forging close partnerships with IR, recognizing that companies are at different stages in their life cycle, from early-stage firms to more mature companies with a tenured shareholder base. Our bespoke IR strategy is congruent with everything we do as an investment bank. We are purposefully and intentionally product and solutions-agnostic, focusing first and foremost on what is best for clients.
In investor relations, that means looking beyond the next presentation or upcoming non-deal roadshow and, instead, working closely with IR teams throughout the year to identify the timeliest messages and the best way to communicate with current and prospective investors.
One component of personalization is where and how the roadshow is delivered. While there has been greater interest post-pandemic in returning to an increased number of in-person meetings, that is not always the default. As we’ve learned over the past few years, virtual and sometimes hybrid meetings can also be impactful in reaching varied audiences across multiple locations.
Similarly, it may not make sense for IR teams to attend multiple conferences a month when it is possible to do outreach with creative technology solutions to better maximize engagement.
The result is likely to be a mix of IR strategies that combine virtual presentations, selective in-person meetings, conferences and new tools such as podcasts and videos.
As we noted in a previous IR Magazine article, flexibility is key to how IR delivers the message and broadens investor outreach. These strategies allow for reach beyond just the East Coast and West Coast, particularly where we see concentration. (Investors, like many in the financial industry, have relocated to all sorts of place, making virtual tools not just practical but also appealing.)
Content concernsA second part of personalization is the content – the best and most relevant ideas. At Cowen, the expansion of our research platform over the past five years has allowed us to deliver high-quality insights and thought leadership, with more investment ideas in the pipeline than ever before.
Historically, Cowen has been known for its strength in life sciences and healthcare, and we continue to build on the breadth and depth of our thought leadership within that sector.
Additionally, Cowen has been expanding research in sectors such as technology, media and telecoms (TMT), consumer and industrials, as well as many subsectors. Cowen’s research also spans numerous themes that touch many industries, such as the future of mobility, energy transition, robotics, digital assets, healthcare innovation and more.
By leveraging thematic insights from research, IR teams have more reasons to reach out to investors with greater relevance. Such content enables opportunities to highlight an organization’s focus on disruptive technologies, promote existing pipelines or better inform shareholders around their R&D strategy. At Cowen, we’re frequently connecting with investors seeking insights into how to expand their portfolios leveraging specific investment themes and the latest emerging trends.
For all these reasons, working with our clients on a personalized approach is key to our philosophy on global roadshows into 2023. This cannot be accomplished by taking the same approach everywhere. Rather, it’s knowing the latest trends across multiple industries, where the market is moving and what is on the minds of investors today.
Cowen is a diversified financial services firm operating through two business segments: a broker-dealer and an investment management division. The firm's broker-dealer division offers investment banking services, equity research, sales and trading, prime brokerage, global clearing and commission management services.
Cowen’s investment management division builds on the company's core insights by developing differentiated, actively managed investment strategies that seek to meet the dynamic needs of our clients. Founded in 1918, the firm is headquartered in New York and has offices worldwide.
Learn more at cowen.com.
