Read on Twitter
1/ starting a thread on determining fit with prospective limited partners. Will add to it over time
Over the years we have noticed that almost all great stockpicking firms we work with are as choosy about their investors as they are about their investments.
Over the years we have noticed that almost all great stockpicking firms we work with are as choosy about their investors as they are about their investments.
2/ do they ask you the questions you would ask if you were in their shoes evaluating your firm? Do they worry about the things you worry about? Are they excited about the things you’re excited about? Do they ask questions that seem irrelevant to you?
3/ is their process thoughtful or more oriented towards box checking?
4/ do you have a sense of how they have behaved in periods of market turbulence? Ask them, and ask around.
5/ are there managers they have stuck with through a few years of bad performance?
6/ if you have recently had unusually good performance, apply extra scrutiny to make sure they are not performance chasing
7/ your partners can reinforce/add to your competitive advantage, or subtract from it. Choose wisely
8/ if you’re really planning to be at this for decades, you’ll need to evolve as an investor. You can’t be static. Make sure you have investors who don’t view you statically but can evolve with you.
