DIANE HARRISON 1

ANATOMY OF AN UPSET

Anatomy of an Upset
Everyone loves an underdog. While superheros have their fans, there’s something about a dark
horse or a comeback kid that generates support for a hard-won victory. Take the recent US Open
tennis championship match between Serena Williams, the sports media’s proclaimed GOAT
(Greatest Of All Time) and arguably the most dominant women’s tennis player ever, and 19-year old
Canadian upstart, Bianca Andreescu. Andreescu stunned US fans, sports media, and Serena herself
by winning the 2019 Open in straight sets, beating back the legend’s late surge to close out the
victory in commanding style. It was truly a modern-day David and Goliath moment.

YOU EITHER WIN OR YOU LEARN

In the alternatives world, there exists a perpetual David and Goliath struggle between emerging,
niche, and small-scale funds and the behemoth organizations that run the lion’s share of hedge fund
and private equity money. Giant funds are virtually self-perpetuating machines, with plenty of
financial cushion for riding out dry spells in management or performance issues. Small funds are in a
constant battle to win over new money, meet expenses and development needs, and recruit top
talent. As Malcolm Gladwell puts it in his book, ‘David and Goliath: Underdogs, Misfits and the Art of
Battling Giants,’ “People can lack resources and power and all kinds of material blessings, but they
are forced to develop their wits.”

It’s hard to be an underdog in the alternative investment world—a fact we know all too well. But
rather than bemoan the myriad of hardships and failures that litter this universe, let’s take a look at
some qualities that help underdogs succeed. Andreescus exist in this world, and can thrive with the
right behaviors.

I CAN DO IT, I CAN DO IT…

One: Keep Your Eye On The Prize. When you start from behind, you have no choice but to persevere
or go under. To achieve success, having focused goals including attracting the right investors and
scaling operations appropriately creates an environment in which fund managers with a refined
strategy and efficient business management can achieve greatness in their own right, and provide
benefits to the discerning investment partners who discover them.

Two: The Power Of Positivity. One of the ‘underdog attributes’ that contributes to success is an
uncommon reservoir of self-belief. Heroes can be sustained by the belief of others in their
superiority, but the dark horses are often fueled by an internal conviction that they can succeed
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against all odds. Underdogs don’t quit in the face of hardship; rather, they rise to meet challenges on
a daily basis, and grow stronger for it.

Three: Learn To Do More With Less. Developing critical coping and problem-solving skills are
essential to underdogs because, frankly, they face more of both situations based on an inherent
disadvantaged status. This translates to limited financial and business resources that can be
leveraged to their utmost advantage, including strategic partnerships when and where they make
sense.

Take the example of the apparel company brand, Life is Good. The company was started by two
brothers with $200 in 1989, selling T-shirts on college campuses from the back of a van. By 2014,
the company had passed $100M in revenues. According to Investopedia’s online article this past
June, ‘10 Surprising Companies That Began as Underdogs,’ “ The brand avoided traditional in-your-
face marketing. Instead, they threw Pumpkin Patch Festivals and gave proceeds to charity, spreading
awareness through word of mouth. The Life Is Good Company has two key initiatives, to spread the
power of optimism and to help children in need by donating 10% of net profits.”

Four: Face The Fear and Conquer It. Underdogs find ways to succeed, including forging smart and
results-driven relationships. They don’t avoid the competition; they study them, and learn from the
experience. And sometimes, a competitor can turn into an ally, or an investment partner, such as
below.

Another of the underdog stories from the article above describes the often-studied ice cream
success of Ben & Jerry’s. “…childhood best friends began their journey by enrolling in a $5 ice cream
making course. In 1978, the entrepreneurs scraped up $12,000 in order to open their first store in a
renovated gas station. Come 1980, the hippie team distributed to local grocery and Mom & Pop
stores out of Cohen’s Volkswagen Squareback. Häagen-Dazs (Pillsbury Company) attempted to halt
distribution of the newcomers in Boston, prompting a “What’s the Doughboy Afraid Of?” customer
campaign. In 1999, Ben & Jerry’s Homemade, Inc. sold to Unilever for $326 million, while
maintaining the company’s brand management and social mission through an independent Board of
Directors.”

Five: Keep The Blinders Off, And Clear-Eyed Vision Intact. While underdogs are often underrated,
leaders can fall prey to being overrated. Underdogs who rise to their challenges are able to see both
themselves clearly to course-correct their journey as needed, and keep an analytical focus on how
competitive leaders offer opportunities to best them.

One last David and Goliath example story is from supermoney.com’s 2017 online article, ‘Stories Of
The Underdog: Companies Succeeding Despite The Odds.” Burt’s Bees Beeswax Lip Balm was
created in 1991, and reinvented the company’s original focus on beeswax candles with an all-
natural lip balm product at a time when such products were the exception rather than the rule.

As the article summarizes, “By 1999 Burt’s Bees was global. Their branding really took the spotlight
in 2007 when they established ‘The Greater Good’ business philosophy; beauty products that are
good for you, good for us, and good for all. Their illustrated imagery and warm color scheme that’s

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prevalent in their branding evokes the all-natural, personal, inviting feel of the business. In an
industry overflowing with cool blues, greens, and sometimes even stark white lip balm, and sleek,
modern beauty products, Burt’s Bees is a welcomed contrast. Clorox purchased this company in late
2007 for a sum of $925,000,000. Not bad for a small local honey producer.”
IT’S PERSONAL, BABY

The investment Davids facing industry Goliaths need to keep all these qualities in mind as they gear
up to do battle each day. Underlying all of the tactics and motivators shared by successful under
dogs is an ability to form personal relationships and convert skeptics to believers. They also share a
healthy measure of passion, talent, and old-fashioned grit. And finally, they possess resilience and
an ability to keep moving. After all, most of the Goliaths started their professional lives as Davids in
their own right.

Diane Harrison is principal and owner of Panegyric Marketing, a strategic

marketing communications firm founded in 2002 specializing in alternative assets. She has over 25 years’ of expertise in
hedge fund and private equity marketing, investor relations, articles, white papers, blog posts, and other thought leadership
deliverables. 2019 AWARD WINNER: Global Business Insight’s Most Innovative Wealth Management Company – U. S. |
Acquisition International's Alternative Asset Communications Expert Of The Year- USA | Acquisition International's Best
Specialist Marketing Communications Firm- Financial Services | Business Excellence Awards – Alternative Asset
Communications Expert of the Year - USA 2018 AWARD WINNER: Acquisition International's Sustained Excellence in
Specialized Marketing Communications - USA | Corporate Insider's Excellence in Marketing Communications – USA. |
Acquisition International's Best Financial Services Marketing Firm – USA. A published author and speaker, Ms. Harrison’s
work has appeared in many industry publications, both in print and on-line. To read more of her published work in
alternatives, please visit www.scribd.com/dahhome. Contact: dharrison@panegyricmarketing.com or visit
www.panegyricmarketing.com.

PANEGYRIC MARKETING | SEPTEMBER 2019