Why “Slightly Better” Asset Managers Stay Invisible While “Category Creators” Build Billion-Dollar Reputations

The “Category of 1” framework that stops you competing and starts you dominating

Want to know why some boutique asset managers build massive funds while equally talented managers fight for scraps?

It’s not their performance, experience, or analytical skills. It’s something Nicolas Cole and the Category Pirates call “Category Creation” — the difference between competing in existing markets versus creating entirely new ones.

Here’s the brutal truth: When you position yourself as “slightly better, slightly cheaper, slightly faster” than other managers, you’re playing a rat’s game that forces you to live in constant competition.

The managers building $50M+ funds? They’ve stopped competing and started creating their own categories.

Today, I’m showing you exactly how to do this — including a simple prompt that helps you discover your “Category of 1.”

The $47 Million Category Mistake

Last month, I watched two equally qualified managers pitch for a massive pension fund mandate.

Manager A positioned himself as: “A better small-cap value manager with superior risk-adjusted returns and a proven track record.”

Manager B positioned himself as: “The inventor of ‘Stewardship Alpha’ — generating returns by investing in companies that actively improve their environmental and social impact while maintaining fiduciary responsibility.”

Guess who won the $47 million mandate?

Manager B didn’t just win — he eliminated all competition by creating a category only he could occupy. There was no “next best alternative” because no one else was doing “Stewardship Alpha.”

Manager A? Still competing with 47 other “better small-cap value managers.”

Why “Better” Is the Enemy of “Different”

Here’s what Nicolas Cole learned from Category Design experts Christopher Lochhead and Eddie Yoon:

“The best way to grow is to CREATE a new category — not to compete within an existing one.”

When you position yourself as “better,” you’re essentially telling prospects: “Hey, there’s nothing really different about me. I’m just trying to get my piece of the pie of the thing that already exists.”

That’s a boring worldview, and there’s nothing exciting about that.

But when you create your own category, you become what Cole calls a “Category of 1” — where you are the only option and there is no next-best alternative.

The Category Creation Advantage for Asset Managers

Think about the most successful “asset managers” you know:

• Warren Buffett didn’t become famous as “a better stock picker.” He created “Value Investing” as a distinct philosophy.
• Ray Dalio didn’t position Bridgewater as “a better hedge fund.” He invented “Pure Alpha” and “All Weather” as unique strategies.
• Cathie Wood didn’t compete as “another growth manager.” She created “Disruptive Innovation” as its own investment category.

Notice the pattern? They became the only option in categories they defined.

When you create your own category:

• Competition becomes irrelevant because you’re the only player
• Premium pricing is justified because there’s no direct alternative
• Clients seek you out instead of you chasing them
• Media attention follows because you represent something new and different

The “Category of 1” Framework for Asset Managers

Here’s how to escape the commodity trap and create your own investment category:

Step 1: Identify Your Unique Intersection

Most asset managers focus on traditional categories: small-cap, large-cap, growth, value, international, etc. These are commoditised boxes.

Instead, look for the intersection of:

• Your unique experience or background
• A market inefficiency you’ve discovered
• A client needs that’s being underserved

Example: Instead of “ESG investing,” you could create “Climate Transition Alpha” — investing in companies positioned to profit from the shift to renewable energy.

Step 2: Name Your Category

This is crucial. You need language that helps people understand how you’re different.

Nicolas Cole calls this “Languaging” — creating new terminology that positions you as the expert in something others haven’t even named yet.

Instead of: “Sustainable investing” Try: “Regenerative Wealth Building”

Instead of: “Small-cap value” Try: “Hidden Champions Strategy”

Instead of: “Dividend investing” Try: “Income Durability Investing”

Step 3: Define the Problem Your Category Solves

Every category exists to solve a specific problem that existing categories don’t address.

Example: Traditional ESG investing focuses on excluding “bad” companies. Your “Regenerative Wealth Building” category focuses on actively investing in companies that improve environmental and social outcomes while generating returns.

Step 4: Create Educational Content Around Your Category

Once you’ve defined your category, you need to educate the market about why it matters.

This isn’t about promoting your services — it’s about establishing the category itself as important and necessary.

Sarah’s Category Creation Success Story

Sarah ran a small dividend fund that was struggling to differentiate from dozens of other dividend strategies. After applying the Category of 1 framework, she created “Inflation-Proof Income Investing.”

Her category focused specifically on companies with:

• Pricing power that allows them to raise prices faster than inflation
• Growing dividend streams that outpace inflation
• Business models that benefit from inflationary environments

The results were remarkable:

Within 6 months:

• 340% increase in qualified prospects
• Featured in 3 major financial publications as “the expert” on inflation-proof investing
• $23M in new AUM from clients specifically seeking inflation protection
• Speaking engagements at 2 industry conferences on her unique approach

The key: She stopped competing with other dividend managers and started creating a new conversation around inflation-resilient income.

Your Category Discovery Prompt

Here’s the AI prompt that helps you discover your potential “Category of 1”:

CATEGORY CREATION DISCOVERY PROMPT FOR ASSET MANAGERS

I'm a boutique asset manager looking to create my own investment category instead of competing in existing ones. Help me discover my potential "Category of 1" by analyzing my unique background and expertise.
My Background:
Investment experience: [Describe your career path, specializations, and unique experiences]
Personal background: [Any non-finance experience that gives you unique perspective]
Investment philosophy: [What you believe about markets that others might not]
Best client outcomes: [Specific examples of exceptional results you've achieved]
Current Positioning:
How I currently describe my investment approach: [Your current positioning]
Primary competitors: [Who you're currently compared against]
What clients say about working with me: [Feedback that highlights what's different]
Market Observations:
Investment inefficiencies I've noticed: [Market gaps or misconceptions you've identified]
Client needs not being served: [Problems existing categories don't solve]
Trends I see that others miss: [Your contrarian or early insights]
Category Creation Framework:
Please help me:
Identify 3-5 potential category intersections based on my unique background, expertise, and market observations
Suggest category names that position me as the inventor/leader of something new rather than "another type" of existing category
Define the core problem each potential category solves that existing investment approaches don't address
Outline the key differentiators that would make this a genuine "Category of 1" rather than just repositioning
Recommend initial content topics to establish thought leadership in this new category
Goal: Create a category where I become the obvious choice for a specific type of investor with a specific type of need, rather than competing as "better" than other managers.
Output Format:
Category Name
Core Problem It Solves
Key Differentiators
Ideal Client Profile
Content Strategy to Establish Category Leadership

Why This Matters More Than Performance

In today’s saturated market, similar performance is table stakes. What separates funded managers from struggling ones isn’t their returns — it’s their positioning.

Category creation does three powerful things:

1. Eliminates competition by making you the only option in your category
2. Commands premium pricing because there’s no direct alternative to compare against
3. Attracts media attention because journalists love writing about new categories and their creators

As Nicolas Cole puts it: “If you’re not creating a category, then what you’re really saying to the world is, ‘Hey, there’s nothing really different about me.’”

“But I Work for BlackRock/Vanguard/State Street — I Can’t Create My Own Category!”

I can hear the objection already: “This sounds great for startup managers, but I work for a large firm. I can’t go rogue with category creation — my superiors would have a fit!”

Here’s what Nicolas Cole discovered about “Personal Category Design” that changes everything:

You don’t need to create a company category. You create a personal category within your existing role.

Think about it: Even within massive firms, certain professionals become known for specific expertise:

• The ESG guy at Goldman Sachs who gets called for all sustainable investing opportunities
• The emerging markets expert at JPMorgan who becomes the go-to person for developing economy insights
• The healthcare specialist at Fidelity who’s quoted in every biotech article

They didn’t start their own funds. They created personal categories that made them indispensable within their organisations.

The “Personal Category of 1” Approach for Large Firm Asset Managers

Here’s how Nicolas Cole’s “Personal Category Design” works for professionals within established organisations:

Instead of competing with colleagues as “another portfolio manager,” you become:

• “The [Your Name] who invented Climate Transition Analysis”
• “The specialist who developed the Demographic Dividend Framework”
• “The expert in Post-Pandemic Consumer Behaviour investing”

The benefits are remarkable:

• Internal recognition as the go-to expert for specific opportunities
• External media attention when journalists need expert commentary
• Career acceleration as you become irreplaceable in your niche
• Speaking opportunities at industry conferences
• Headhunter interest from firms seeking your specific expertise

Sarah’s Personal Category Success at State Street

Sarah worked as a senior analyst at State Street, feeling invisible among 200+ investment professionals. Using Personal Category Design, she created “Inflation-Resilient Income Analysis.”

Her approach:

• Developed proprietary metrics for identifying companies with inflation-proof pricing power
• Published internal research that became the most-requested analysis in the firm
• Started speaking at client meetings as “the inflation expert”
• Got quoted in Wall Street Journal articles about inflation hedging strategies

The results:

• Promoted to Senior Portfolio Manager within 18 months
• Became State Street’s external spokesperson for inflation strategies
• Headhunted by 3 boutique firms specifically for her inflation expertise
• Speaking engagements at 4 major industry conferences

She didn’t create a new fund. She created a new expertise category within her existing role.

Your “Personal Category of 1” Implementation Strategy

Step 1: Choose Your Intersection Look for the unique intersection of:

• Your educational background or prior career
• An emerging market trend or inefficiency
• A client needs your firm isn’t fully addressing

Step 2: Develop Internal Thought Leadership

• Write internal research pieces showcasing your unique perspective
• Volunteer for client presentations in your area of developing expertise
• Become the person colleagues consult about your category

Step 3: Build External Recognition

• Share insights on LinkedIn (with compliance approval)
• Offer to speak at industry events about your specialised area
• Contribute expertise to financial media when relevant opportunities arise

Step 4: Leverage Your Category

• Your personal category becomes your competitive advantage for promotions
• Other firms start tracking your work and considering you for specialised roles
• You become the “obvious choice” when opportunities in your category arise

The Modified Category Discovery Prompt (For Large Firm Professionals)

PERSONAL CATEGORY DESIGN PROMPT FOR LARGE FIRM ASSET MANAGERS

I work for [Large Asset Management Firm] and want to create a Personal Category of 1 that makes me indispensable and accelerates my career, while working within our existing structure.
My Current Role:
Position: [Current title and responsibilities]
Experience: [Years in current role and prior experience]
Internal reputation: [How colleagues currently see me]
Client interaction: [Level of client-facing responsibilities]
My Unique Background:
Educational background: [Degrees, certifications, unique academic focus]
Pre-finance experience: [Any non-finance background that gives unique perspective]
Personal interests/expertise: [Areas of personal knowledge that could apply to investing]
Geographic or cultural insights: [Any unique cultural or regional expertise]
Market Observations:
Trends I've noticed that colleagues miss: [Your unique market insights]
Client questions that our standard approaches don't address: [Unmet client needs]
Emerging areas our firm hasn't fully developed: [Potential growth areas]
Firm Context:
Our firm's existing specialties: [What your firm is already known for]
Areas we could strengthen: [Gaps in firm's expertise]
My firm's client base: [Types of institutional/retail clients]
Personal Category Development:
Please help me:
Identify 3-5 potential personal categories I could develop within my current firm that would:
Make me the "go-to expert" for specific opportunities
Align with our firm's strategic interests
Create value for our existing client base
Suggest internal development strategies to build expertise and recognition in each potential category
Recommend external positioning approaches that build my personal brand while representing my firm positively
Outline career acceleration pathways that each category could create within large asset management
Goal: Become known as the specialist for [specific category] at [my firm], making me indispensable internally and attractive to other firms if I choose to move.

Ready to Stop Competing and Start Creating?

Whether you’re a boutique manager or work for a massive firm, the Category of 1 approach transforms your career trajectory.

For boutique managers: Create market categories that eliminate competition. For large firm professionals: Create personal categories that accelerate career advancement.

The principle is the same: Stop trying to be “better” and start being “different.”

Your unique background, insights, and approach deserve better than being lumped in with “other asset managers.” They deserve their own category.

Use the appropriate prompt above to discover your Category of 1, then start building recognition around it.

What unique intersection of your background and market insights could become your personal category? Hit reply and let me know — I love helping asset managers discover their Category of 1.

All the best,

Justin Spencer-Young

P.S. Creating a category isn’t just about marketing — it’s about genuinely innovating how you think about and solve investment challenges. The best categories emerge from real insights that create genuine value for specific types of clients.

Want help developing your Category of 1 into a systematic authority strategy?

While the prompts above help you discover your potential category, building systematic thought leadership around it requires consistent, strategic content creation. That’s where I help boutique asset managers transform their category insights into client-attracting authority.

If you’re ready to stop being another “better” manager and start being the definitive expert in your own category, let’s have a conversation about how strategic content can establish your category leadership.