In this episode, I outline my method for how I like to work with investors.
It doesn't always work.
There's the occasional bump in the road (investors want to add in when recent performance is hot and sell out when I've been losing; they forget the benefits of adding a strategy like mine in their portfolio in the first place; they forget the general performance behavior of trend following - namely, when it does and doesn't do well) but it has served me well in my short career so far.
My goal: shift the focus away from short-term returns to long-term discipline.
Honest pro-active communication is key.
Scrambling later when emotions are high doesn't work. Sooner or later, the manager and/or investors breaks their discipline and then all hell can break loose.
**To read this outline in blog and PDF form, please click on the link below.
http://www.melissinostrading.com/culture/how-we-work-with-investors/
40: How We Work with Investors