The emerging manager space is intriguing. On one hand you have undiscovered opportunity, on the other you have a structure that limits its ability to take advantage of those opportunities, a thread...

The same structure limits any progress on diverse owned managers and diversity in the industry in general. For allocators trying to figured out how to rethink things some thoughts:

It’s possible to analyze an 18 month track record. It is I promise. Warren Buffett had an 18 month track record once

Think outside the box - specifically your assumptions about investment methodology. You won’t capture any innovation if you are trying to find a methodology to fit your existing beliefs

Get to know a manager and don’t make assumptions. Don’t lecture them on types of vehicles and operations - tell them what you require clearly, and your decision making criteria. Then let them do the same

If you are committed to emerging managers it should be because of the performance opportunity. Everything you and your team can do to focus on performance and the process that leads to it (and DD of course) will help you consistently find the best emerging managers, I promise

Finally I will claim some legitimacy in that I have only worked for emerging managers for my entire investment career. Both have been long only and truly unique style of portfolio construction so there’s the caveat. Also I am a totally biased towards managers