Career Musings, Part II
So, full disclosure, I’ve been thinking about three different work possibilities at which to direct my energies:
- Raising an early-stage fund (I already discussed this)
- Building an alternatives trading business at a Wall Street firm
- Running a hedge fund (someone else’s hedge fund)
These avenues are pretty cool. And I have, in fact, thought about trying to combine VC, hedge fund management and trading gigs. But I haven’t really thought about trying to combine them in a new fund structure, one that is a hybrid between a liquid-markets hedge fund and an early-stage investment fund. Why? Because they typically attract different classes of investors. But I’ve been thinking today, that…
It actually makes abundant sense and, in fact, reflects the way I think about investing. Large, liquid companies are being disrupted by new technologies and business models all the time, which effects their earnings prospects, growth trajectory and market positioning. And who does the disruption? Frequently it’s early stage companies. I learn a tremendous amount through my early-stage investing activities that informs my liquid-markets investment outlook. Further, observations about what is going on with large public companies can often point to areas where new innovation is needed or where existing early-stage companies can be plugged in to solve problems. So by running a book that allows for both early-stage and liquid-markets investing, one can create a virtuous cycle of learning and information that can be monetized. In effect, creating a situation where information arbitrage is at play. This, of course, is my holy grail.
So I am going to spend some calories thinking about this idea more concretely. Thanks to those who have written me with their ideas. I appreciate it. Feel free to ping me with additional thoughts and perspectives as well.
