• Brett Friedman

Toxic Due Diligence!

A colleague of mine once said that he could assess the quality of investment managers within 5 minutes of meeting them. Yes, the usual stuff is important, but not the most important. As Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.” I’ve discovered that every investment manager and organization has certain “tells” that almost unfailingly indicate that trouble lies ahead. Standard investment manager due diligence is incomplete and ignores them.


Below is my semi-offbeat checklist -- if you can think of additional items, please let me know!

Toxic Tells
.pdf
Download PDF • 78KB

437 views

Recent Posts

See All

Archegos: I Have a Solution

I wrote about Archegos a few weeks ago but it’s effects are still reverberating. Other than the usual firings, statements of contrition, and juicy insider accounts, the incident has revived the age-o

Archegos: Not So Fast!

It’s been a few weeks since the Archegos story broke and everyone seems to have moved on. As popularly told, it’s the emblematic story of inscrutable hedge funds, excessive leverage, regulatory failur

Spoofing: The Trials of Deutsche

September 24, 2020 Brett Friedman Managing Partner · The criminal trial of two former Deutsche Bank precious metals traders by the Department of Justice began recently. · A few key legal decisions ema