Hedge Fund Question of the Week – Winter Edition – No. 3
What are two of the most important words to remember?
Answer: “Fiduciary Duty”.
Yes. An investment manager owes a fiduciary duty to its clients, and that should be a guiding principle of every firm.
But this post is about something a bit different. This post is about the incredible power of the words “fiduciary duty.”
Everyone knows that a fiduciary duty is serious business, but few have an in-depth understanding of its precise meaning and application. As a result, saying those words can stop a conversation in its tracks, reduce a room to hushed tones and even make the speaker sound like the ultimate authority. So if you are ever in a jam, losing an argument or simply in over your head, just remember to ask this simple question: “Have we thought about our fiduciary duty?”
But also remember to use the words sparingly. And of course, save room for a little skepticism when someone else drops the line.