Severe liquidity deterioration when scaling AUM is fatal for fund managers
Basil Qunibi · Basil Qunibi - Moneyball for Allocators (Capital Allocators, EP.42) · Mar 5, 2018 · at 43:42
Basil Qunibi, CEO of Novus Partners, outlines the three paths managers take when expanding AUM and explains why liquidity deterioration destroys funds.
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“And the first two, while they're about deterioration, the last one, liquidity deterioration, is about being in business. And it's the only fatal one of the three choices. And so, for example, I've yet to see a manager that has experienced a significant liquidity deterioration, call it greater than 60% liquidity deterioration, that has actually survived in the long term.”
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