When a Thesis Gets in the Way of Risk

  • Send money back to investors, at which point the LPs assume the whole strategy failed and something is wrong at the firm. Even if the initial investments made were okay.
  • Pivot theses — but this takes a lot of buy-in from LPs. Usually, something in the fund documents would need to change for this to happen.
  • Keep investing through it all, hoping the world will come back to where it was.
  • Too much capital came into a space
  • Some change in technology
  • A global pandemic
  • etc



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Ali Hamed

Ali Hamed


[5'9", ~170 lbs, male, New York, NY]. I blog about investing. And usually about things I’ve learned the hard way. Opinions are my own, not CoVenture’s