Jim Doughan on selecting an alternative investment manager

Perhaps instead of looking for the best fishermen we should instead focus on finding fishermen that work in reliably profitable waters.  Waters that they know well.  Good fishing holes. 

There are many things that can make a fishing hole a good one.  It can be hidden so competitors can’t find it and it doesn’t get fished out.  It can be remote and hard to get there and back.  It can be too small for the big boats to get to, or too far out to sea for all but the most seaworthy vessels.  Perhaps one needs special equipment, training or licensing to safely work there.  Maybe like Maine lobstermen the fisherman can get a right to exclude others from their fishing areas.  There are a multitude of potential explanations.

~ Jim Doughan, Chief Investment Officer, Accord Family Office, "Fishing Holes: A metaphor for understanding the economic rationale for claims of edge," Context 365, November 2, 2020