• The muscles of portfolio construction and valuation atrophy, as consensus-driven ‘access’ dominates behavior and idiosyncratic risk falls out of favour.


• The typical ‘power law’ distribution of outputs collapses as few genuine outliers can be realised from a concentrated pattern of investment.


• As returns converge on a mediocre market-rate, investors

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It means that the key question for a new possible investment is not whether it looks good on its own, but whether it adds value to the strategic portfolio overall, shifting your lens from looking for risk reduction through diversification, to looking for value creation through strategic synergies.