Six years ago, I invested in a hedge fund that did not quite hit the ground running. The performance was out of my expectation. Now, I will admit, my first reaction was not to grab a megaphone and start shouting at the trader because honestly, I have never found yelling to be particularly productive. Instead, I chose to manage the situation calmly, seeking clarification and understanding the reasoning behind the poor numbers.
As it turned out, the trader’s explanation was well thought out and the rationale made sense. Markets are like a roller coaster and there are always twists, dips and the occasional upside-down moment before you reach the fun part.
True to their word, the fund’s performance began to pick up over time, proving that patience and a little faith often pay off. I have always believed in focusing on the positives and giving people the benefit of the doubt.
I have always believed in never running people down. Life (and investing) is unpredictable enough without adding unnecessary drama. Besides, I would much rather keep my energy focused on solutions than on making someone else’s day miserable.
This belief also shapes how I deal with investors in my work. I make it a point to avoid working with clients who tend to run others down. Why? Because creating a toxic environment of blame and finger-pointing does nothing to improve outcomes, it only makes the journey miserable for everyone involved.
Investing is a partnership built on mutual respect, trust and a shared understanding of the risks and rewards. In my experience over the years, calm and collaborative conversations are far more productive than heated exchanges.
Nobody likes to lose money. Instead of asking, “Who is to blame?” I prefer clients who ask, “How can we move forward together?” Those are the kinds of relationships that lead to long-term success not just in investing, but in life.