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Two books help frame some of the interpersonal challenges of understanding people we encounter when doing onsite due diligence.

Excellence in due diligence stems from mapping the landscape of our understanding, especially by continually asking the title question.

This posting consists of two parts: A review of a paper that tries to measure in-person due diligence meetings in venture capital and ideas about improving the assessment of due diligence practices.

In comparison to their practices before the pandemic, many organizations continue to increase the number of virtual meetings relative to onsite ones. Here are some thoughts about the two choices in regard to due diligence meetings.

Narratives about the culture of an organization can mask the reality of it. Often unauthorized accounts are closer to the truth than authorized ones.

The pattern is clear: Performance drives asset flows from investors. But what about the other way around? A new academic paper with a provocative title lifts the lid on an important concept.

Bridgewater is a fascinating case study of leadership and organizational behavior. While it is unique in many ways, questions about judging the firm apply equally to others.

This wide-ranging posting gives perspective to the challenge of determining an asset manager’s “pedigree” and how assessments of it can go awry.

A simple question can reveal embedded expectations regarding future performance. Regular use of it can improve manager selection processes.

In the stylized model, both asset managers and allocators add value for the owner of an asset that chooses active management. To deliver on that possibility, those at each level need to differentiate themselves in the methods employed.

A thoughtful paper offers perspective on the changing nature of performance persistence in alternative investments and some recommendations for changing manager selection practices.

Information about performance gets sliced and diced in innumerable ways. Additional quantifiable attributes of asset managers have also been studied, but other factors (ones that really matter) are difficult to analyze.

This fourth in a series of postings takes a broader look at some of the precepts of anthropology as they apply to the craft of due diligence.

What length of time makes sense when you are evaluating the performance of an asset manager? A research survey makes judgments in response to the industry’s standard frame.

Due diligence encounters are dominated by impression management. Those doing the work need to be skeptical and employ tactics that will go past the narrative to add value.