Feb 16, 2023·edited Feb 16, 2023Liked by Jeffrey Carter
I predict a backlash against woke fund VC fund managers based on the invisible hand. In my area (procurement/finance/supply chain tech) the best returns have been from individuals and funds without a political agenda. I'm having more discussions with those I know in the field on this. More Jews, especially, are waking up to the fact that woke is essentially an anti-Semitic agenda (thank you David Bernstein). The classical liberal / liberal backlash is coming (I would not call it a conservative backlash). But personally, I have avoided funds recently which I know have a progressive bias or put DEI or ESG agenda above a real investment thesis. As one factor, no problem (e.g, Vista -- which is more PE than VC of course, but still 100% tech). But if politics (and woke is politics) are part of the main overall investment dining thesis/menu, as you point out, you might as well shoot your returns in the foot.
I think it will take a while for ESG to work its way through the system. You have to see the thesis play out. For VCs they will say, "The company hasn't matured and we need a longer time horizon". For stock investing, they might say the same but there are other places to put your money so the pain might be felt earlier. I have never seen a business in ESG, or especially green energy, that can cash flow on its own as a standalone business. They all need some special accomadation or subsidy.
Very insightful piece particularly the comments about conservative fund managers. But as an entrepreneur I can I can tell you that I’m fielding more inbound investment calls now that I ever have before. Some are looking for “pre extinction” deals but many are not. I just find it interesting.
Associates at funds are paid to kick a lot of tires. My advice to you is have some qualifying questions you can ask early in the conversation so you don't waste your valuable time.
It’s a difficult reality we all face. Even those managers inside HNW family offices who aren’t politically open about their positions try relentlessly to be a Switzerland like presence in front of the obvious investor biases. It’s always been about the best ideas and solutions being brought to the market place to most of these investors, and being a neutral manager that avoids catering to biases with open eyes is exactly what they want in my experience. The bias in capital raising is extreme and as you say, I wish they could find a way to allocate based on the free market of ideas instead of whatever this new nonsense is.
I predict a backlash against woke fund VC fund managers based on the invisible hand. In my area (procurement/finance/supply chain tech) the best returns have been from individuals and funds without a political agenda. I'm having more discussions with those I know in the field on this. More Jews, especially, are waking up to the fact that woke is essentially an anti-Semitic agenda (thank you David Bernstein). The classical liberal / liberal backlash is coming (I would not call it a conservative backlash). But personally, I have avoided funds recently which I know have a progressive bias or put DEI or ESG agenda above a real investment thesis. As one factor, no problem (e.g, Vista -- which is more PE than VC of course, but still 100% tech). But if politics (and woke is politics) are part of the main overall investment dining thesis/menu, as you point out, you might as well shoot your returns in the foot.
I think it will take a while for ESG to work its way through the system. You have to see the thesis play out. For VCs they will say, "The company hasn't matured and we need a longer time horizon". For stock investing, they might say the same but there are other places to put your money so the pain might be felt earlier. I have never seen a business in ESG, or especially green energy, that can cash flow on its own as a standalone business. They all need some special accomadation or subsidy.
Very insightful piece particularly the comments about conservative fund managers. But as an entrepreneur I can I can tell you that I’m fielding more inbound investment calls now that I ever have before. Some are looking for “pre extinction” deals but many are not. I just find it interesting.
Associates at funds are paid to kick a lot of tires. My advice to you is have some qualifying questions you can ask early in the conversation so you don't waste your valuable time.
Spot on.
It’s a difficult reality we all face. Even those managers inside HNW family offices who aren’t politically open about their positions try relentlessly to be a Switzerland like presence in front of the obvious investor biases. It’s always been about the best ideas and solutions being brought to the market place to most of these investors, and being a neutral manager that avoids catering to biases with open eyes is exactly what they want in my experience. The bias in capital raising is extreme and as you say, I wish they could find a way to allocate based on the free market of ideas instead of whatever this new nonsense is.
Timely advice Mr Carter!
OK, not exactly the same, but what about Strive Funds? I'm in Vanguard and I'm thinking of purchasing all of their funds to get OUT of ESG fairy land.