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

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Ali Hamed

Ali Hamed

5.4K Followers

[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