Good morning 👋
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Your fund size is your strategy.
That quote should be taped on the computer for any fund manager out there.
Any time you change AUM, you change the strategy of a given fund. It’s never as simple as “we’ll just adjust allocations and ownership targets up with fund size".
There is always nuance, and not recognizing that nuance is how funds, fund managers, and their LPs end up losing a lot of money.
James Heath writes about this a lot, I’ve spent a lot of time digging through this piece. The TL;DR is that small funds have better odds of winning, but there’s a lot that still goes into this equation.
Here are some more thoughts on that …
