I’ve been using an unlikely tool to coach boutique asset managers in effective communication for nearly three decades: a classic segment from a 1975 episode of “The Bob Newhart Show.” While Newhart’s world couldn’t be further from Wall Street, the communication pitfalls he humorously demonstrates are startlingly relevant to our clients. With Newhart’s recent passing, it’s a poignant time to reflect on the lessons from his work. Here’s the interview.

The Communication Conundrum

Portfolio managers often excel with numbers but struggle with words. Many managers appear visibly uncomfortable in presentations, client meetings, and media interviews. They might ramble or veer off-message, confuse their audience, or miss critical points.

Public speaking can be more painful than a root canal, potentially damaging client relationships and hindering asset growth.

However, those who master communication stand to gain significant benefits. Effective spokespeople can articulate complex strategies clearly, instilling confidence in clients and prospects. They adeptly handle tough questions, maintain composure under pressure, and consistently deliver critical messages. This skill enhances the firm’s reputation and drive asset inflows and retain clients during market volatility. Strong communication skills can be a powerful differentiator for portfolio managers and their firms.

When I first show the Bob Newhart interview to a room of investment professionals, the reaction is often a mix of laughter and uncomfortable recognition. They see themselves in Newhart’s character, Dr. Robert Hartley—a smart, capable professional who fumbles through an interview, veers off-topic, and misses opportunities to convey key messages.

A Deceptive Interview

The video begins with casual banter. Dr. Hartley and the interviewer, Ruth Corley, talk light-heartedly about the early morning hour and her lack of experience interviewing psychologists. Dr. Hartley appears relaxed, smiling, and joking easily. However, the atmosphere shifts as soon as the formal interview begins. Corley’s demeanor changes and her questions become pointed and challenging. Dr. Hartley tenses up, caught off guard by the sudden shift.

“My first guest is psychologist Dr. Robert Hartley,” she opens the interview. “It’s been said that today’s psychologist is nothing more than a con man, a snake oil salesman, flimflamming innocent people, peddling cures for everything from nail biting to a lousy love life. And I agree.”

When Good Interviews Go Bad

After a commercial break, she continues her aggressive questioning. She asks about the effectiveness of psychological treatment. Dr. Hartley responds defensively: “Well, I can’t guarantee that every person that walks through the door will be cured.”

Corley presses, “You mean you ask $40 an hour, and you guarantee nothing?” This defensive posture is all too familiar to asset managers, who often bristle at questions about high fees or underperformance.

The interviewer presses Dr. Hartley about his success rate. He fumbles: “I get results. Many of my patients solve their problems and become successful—professional athletes and clergymen. Some go on to head large corporations.” This vague response mirrors many portfolio managers’ struggles to articulate what makes them different.

The Pitfalls of Poor Communication

Perhaps the most cringe-worthy moment comes when Dr. Hartley nearly breaches client confidentiality:

Dr. Hartley: “One of my patients is an elected official….”

Corley: “What? Did you say an elected official?”

Dr. Hartley: “I might have. I forget.”

Corley: “Who is he?”

Dr. Hartley: “I can’t divulge his identity.”

Corley: “Why? There’s a deranged man out there in a position of power.”

Dr. Hartley: “He isn’t deranged… anymore.”

This exchange typically elicits nervous laughter from my audience as they recall their close calls with accidental disclosures. The scene illustrates how easily one can slip up and reveal confidential information, like a stock that you are in process of selling, especially under pressure.

Given the strict regulatory environment and the need to maintain client trust, this scenario is particularly relevant for financial professionals. A single slip about a high-profile client or a confidential transaction could have severe consequences for the individual and the firm.

Throughout the interview, Newhart’s character struggles to stay on message. While humorous in a comedy sketch, this communication style can be disastrous when asset managers try to communicate with investors.

Strategies for Effective Communication

I’ve developed strategies to help financial professionals overcome these communication hurdles over the years. The process focuses on three areas:

1. Refine unique stories to differentiate themselves in the market.
2. Master verbal delivery of these messages to ensure complex strategies are articulated clearly and compellingly.
3. Build confidence through practice, including techniques for staying on message and bridging back to key points when conversations go haywire.

This approach equips asset managers with the tools to communicate effectively and confidently in presentations, client meetings, and media interviews.

The results can be transformative. For example, a portfolio manager client was initially so reluctant to engage in client-facing activities that he’d sweat at the thought of talking to prospects. Eventually, the marketing department stopped asking him to participate. However, after we worked together, he has confidently led investor meetings.

Another case involved a brilliant quantitative analyst who struggled to explain her complex algorithms to non-technical audiences. She would dive into intricate mathematical details in client meetings. Sales teams dreaded bringing her along, as potential investors would leave more confused than enlightened.

After communication coaching, she learned to translate her expertise into relatable analogies and clear, jargon-free explanations. Now, she’s become the firm’s go-to presenter for technical strategies, consistently impressing clients with her ability to make complex concepts accessible and engaging.

Becoming Your Firm’s Best Spokesperson

While we may not all have Bob Newhart’s comedic timing, we can certainly learn from his character’s communication missteps. The goal isn’t to become a comedian but to be the best spokesperson you can be for your firm. It’s about feeling comfortable in your role, staying on message, and effectively conveying your expertise.

When you master these skills, you represent your firm well and build trust and credibility with your audience. Ultimately, that’s what truly resonates with clients and prospects alike.

Effective communication is crucial for portfolio managers and asset management firms. If you want to enhance your firm’s perception among clients, prospects, and the media, schedule a free strategy session with us today.

Dan Sondhelm is the CEO of Sondhelm Partners, a firm dedicated to helping boutique asset managers attract investors, strengthen credibility, and build influential brands.