Four operating principles that govern every position in the firm.
Write it down. Every position begins as a memo: the mispricing, the catalyst, what would prove us wrong, and the size that survives being wrong. Memos are revisited quarterly and scored against outcomes.
Pay for asymmetry. We would rather own a modest edge with bounded downside than a large edge that requires the world to cooperate. Convexity is bought when it is cheap, not when it is needed.
Separate luck from skill. Attribution is decomposed to factor, sector, and selection at the analyst level. Compensation follows risk-adjusted contribution, not headline P&L.
Institutional alignment. Partners are the firm's largest investors, capacity is capped by strategy, and we close funds before dilution rather than after.