• We believe in investment talent.
• Skillful risk control is the mark of the superior investor.
• Risk is not knowing what you are doing.
• Alignment of interest is fundamental - making sure incentives contribute to this alignment is important.   We are not opposed to performance fees which encourage a focus on performance rather than a focus on accumulating funds under management.  
• Markets could accurately value assets if all participants were rational and had the same information.  History shows us this is not the case, and markets present opportunities for skillful investors.
• To materially outperform markets, you must be prepared to underperform for extended periods of time.  Most managed funds' portfolios closely follow markets to prevent underperformance - this precludes them from any material outperformance and ensures similar downside risk as the market.
• Diversification is not about holding multiple positions but is about holding uncorrelated positions.  The challenge is to find reliably uncorrelated investments.  During times of market stress correlations between different investments often converge.
• Historical correlations can be mis-leading.  It is only by understanding the drivers of a manager's returns that you can assess the likely correlation going forward.
• The desire for more, the fear of missing out, the tendency to compare against others, the influence of the crowd and the dream of a sure thing - these factors are universal.*
• When prices are high, it is inescapable that prospective returns are low, and risks are high. *
• What is clear to the broad consensus of investors is almost always wrong.  The very coalescing of popular opinion behind an investment tends to eliminate its profit potential.  *
• Access to talented investors is generally through managed funds.   The best place to find these talented investors is in boutique funds, seeded with the managers' own capital, and investing in their own unique way.
• The size of a fund is generally an impediment to performance.  There are exceptions but they are few and far between.

 *  "The Most Important Thing" - Howard Marks