The Paradox Of No Choice – Global Markets, Marginal Hurdle Rates, And Changing Rules

The Paradox Of No Choice – Global Markets, Marginal Hurdle Rates, And Changing Rules

The Paradox Of No Choice – Global Markets, Marginal Hurdle Rates, And Changing Rules by Jeffrey Miller, Partner, Eight Bridges Capital Management

Note: This week’s note was written on July 17th. I am traveling in Alaska with very limited internet access, and am just able to send it today. In addition, due to a lack of internet access, there will not be the usual quotes from popular music or movies. I’m sure you’ll all survive.

The Paradox of No Choice

The Paradox of Choice is a well-known psychological phenomenon in which a consumer, faced with too many choices, experiences anxiety about making the wrong choice and therefore makes no choice at all.  Famously, emigrants from the Soviet Union, where they had few if any choices about their food in grocery stores, would come to America, with its seemingly limitless choices, and be paralyzed with indecision. Their lack of prior information and inability to anchor their choices on any prior experience made the situation, instead of an amazing one (“look at all this food!”) an ultimately stress-inducing nightmare. Eventually they would adjust and be able to function, but there is something about too many choices that makes the average consumer freeze. A similar condition is paralysis by analysis – faced with too much information and no good way to organize and process it, many people simply choose to do nothing – they make no decision at all.

Bonhoeffer Fund July 2022 Performance Update

Screenshot 27Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%.   Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for