The Deciding Vote

At a recent finals presentation, two investment firms presented to the board. The board cast seven votes, with three choosing one firm and three choosing the other based on the in-person presentation. The tie-breaker? A decision based solely on the book — by a board member unable to attend the competing finals presentations. The losing firm had always relied on an engaging, largely book-free presentation. Their book, while professional and high quality, delivered a bare bones representation of the investment process. The book for the winning firm, by contrast, included a detailed process map, navigating clearly from the universe to the portfolio and describing a sell discipline that aligned tightly with the buy discipline. Without benefit of the in-person presentation, the deciding vote hinged on one individual’s perception of the presentation book.

Moral: The presentation book does matter.