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AD's avatar

Stories, bio and track record (execution) showcase the investor's set of principles. For example, Berkshire's out-performance is rooted in its culture, as it's key in their superior decision-making, but it needs no introduction. However, for a funds manager who's only starting, stories are the only way to convince of commitment to selected approach, prove the evolution of thinking, how ideas originate.

In any investment, having a strategy is always beneficial. And outside of HFT world, clients need to be convinced about the strategy and therefore how it originated, how manager came to it. Long-term returns require due diligence and sticking to the system, which should be well-defined in investor's head (if not shared with clients, which isn't always viable). Stories prove others that you are consistent in your thinking, and therefore investment approach.

In thematic investing such as ESG, it's key for clients and manager to achieve trust to agree on principles, so even more necessary to prove interest, present ideas, form + defend position on issues, themes, sectors, companies, etc. Digital medium allows for superior networking (matching on views) in that regard.

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Lance Ahern's avatar

I've probably watched Margin Call 20 times - fantastic movie. Catching up on my backlog - keep the great posts coming.

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