5min chapter

The Value Perspective cover image

The Value Perspective with Joe Wiggins 2.0

The Value Perspective

CHAPTER

What Are the Bread Flags of a Successful Fund Manager?

Ego and humility are really important factors to consider. If there's a gap between their level of confidence in their own approach and what can realistically be expected from any active fund manager, that's a major warning sign. I think at the top level, the easiest thing I would worry about is extremely strong performance. And my view is we should never investment in a fund because it has smooth performance. We might want to invest in a fund that has smooth performance, but that shouldn't be the reason. That economic diversification model against market pricing is very much behavioral rather than a liquidity premium. You can't make stupid decisions for private equity as you don't experience many losses due to marked-

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