In my experience, hedge funds are not complex because of opaqueness, risk or access. Their complexity stem from the fact that the single capability of short selling unlocks an entire toolkit that not only makes hedge funds fundamentally different, but also introduces an endless opportunity set that leaves each one fundamentally unique.

We introduce the analogy of a Tangram puzzle – some shapes are large and dominant; others are small but essential. All are required to complete the puzzle.

A well-constructed portfolio recognises the value of each shape, not just the most obvious ones.