Communicating Through Volatility: Why It Matters Most for Alternative Investment Managers

In volatile markets, communication is not just important - it’s a necessity. For alternative investment managers, the ability to shape clear and consistent messages can mean the difference between reinforcing credibility or losing investor confidence. Strategic communication provides the clarity stakeholders need to navigate uncertainty.

Over the past decade in strategic communications and through my work with alternative investment managers at ASC Advisors, I’ve seen time and time again that market turbulence magnifies the cost of inconsistent messaging. When markets are unsettled, investors are more attuned to every signal. What you say, how you say it, and how consistently you repeat it becomes vital to maintaining trust.

In today’s constantly evolving environment, the priorities below can help ensure messaging remains credible, consistent, and effective when it matters most.

Establish a Clear Narrative

In uncertain times, stakeholders look for direction. Managers who can articulate a coherent investment thesis and explain how short-term dislocations fit into a long-term strategy provide the confidence that investors are looking for to feel assured.

A constantly shifting message only deepens doubt, but a steady, well-defined narrative acts as an anchor for stakeholders, reassuring them that the firm is navigating turbulence with discipline and perspective.

Tailor Messaging to Each Audience

What limited partners need to hear can differ from what portfolio companies, consultants, or regulators require. A one-size-fits-all approach doesn’t always work. Effective managers adjust tone, detail, and delivery for each stakeholder group while tying all communications back to the same central themes. This balance ensures clarity for specific groups without diluting the consistency of the key messages that should be present in every communication.

Investors seek context around performance. Consultants are interested in data. Counterparties expect operational clarity. The media wants current market commentary as well as a forward-looking perspective. Anticipating and addressing these distinct needs helps managers maintain control of their narratives and strengthens credibility across the board.

Communicate Proactively, Not Reactively

The first time a manager thinks seriously about a communications strategy should not be in the middle of a crisis. If planning begins only after a performance slip, reputational issue, or sudden market shift, the firm is already behind.

Proactive communication means anticipating likely questions and answering them before they arise. Doing so signals preparedness, steadies stakeholders, and ensures the firm shapes its own narrative rather than reacting to one imposed by outside sources.

Prioritize Transparency Without Overpromising

Standard updates such as monthly tear sheets or quarterly letters rarely suffice during periods of stress. Messaging should address broader conditions directly while being candid about both what is known and what remains uncertain.

Avoid speculation or projections that may change. Instead, explain how models are designed to withstand volatility, what stress testing reveals, and how portfolios are positioned for risk management. This level of transparency signals that the firm understands the risks and is actively managing through them, without overstating outcomes.

Emphasize Consistency Across Channels

In an age when investors consume information through calls, letters, social media, and the press, consistency is non-negotiable. Big discrepancies can create confusion or raise doubts about alignment within the firm. A disciplined communications framework ensures the firm speaks with one voice, no matter the platform.

Employees can also be overlooked in times of market uncertainty, yet they play a critical role in shaping a firm’s reputation. Internal communications should align with what is being said externally, providing teams with the clarity and confidence to reinforce the firm’s narrative in every interaction. When staff and leadership are aligned, a firm’s credibility and reputation are strengthened.

Prepare for Long-term Success

Market turbulence rarely resolves in a single day or quarter. Firms that sustain communication efforts over time rather than treating them as one-off responses can position themselves as reliable partners with a clear path forward who investors can rely on during periods of high volatility.

Establishing a strong communications plan should include tailored messaging for each audience, scenario playbooks and crisis training ahead of potential emergencies, such as cyber breaches, litigation matters or personnel issues, and clearly defined roles for executives and client-facing teams. Managers can strengthen readiness by assigning roles and responsibilities, rehearsing responses through mock crisis sessions and simulations, and engaging external advisors with industry and scenario-planning expertise.

These steps ensure leadership is equipped to deliver a unified message under pressure. Even in the absence of major updates, maintaining a regular cadence of aligned communications reinforces firm stability and investor confidence. Those that take this approach are better positioned to navigate any event, protect their reputations, and emerge with stronger relationships lasting across cycles.

At ASC Advisors, we work with alternative investment managers to develop forward-looking communication strategies designed to anticipate challenges and respond effectively - and not just in periods of market volatility, but in any crisis situation.

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Keely Gispan is a Managing Director at ASC Advisors, a strategic communications firm dedicated to exclusively serving the alternative investment management industry, where she advises clients on reputation management, brand building, and profile-raising initiatives. She is based in Miami, Florida.

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