Capital Allocators · Monday, June 29, 2026
Nicholas Csicsko identifies the primary error allocators make as the pursuit of a 'perfect' manager, expecting flawless performance, zero drawdowns, and comprehensive ESG adherence. He argues that such perfection does not exist. Instead, he advises looking for managers with a robust, adaptable process, transparency, and ethical conduct, coupled with a personal gut check of trust.
“I think the biggest mistake is we are looking for perfection. We want the manager who has no drawdown, who has incredible performance, who's done a ton of referencing, who's great at the ESG side of things and on and on and on. We want to find the manager who is just truly perfect. And the reality is, there's no perfect manager.”
“So what you're looking for is the manager who has a great process, who's adaptable, who's transparent, who's doing the right things for their stakeholders. And then you have to be able to look at that manager in the eye, have a gut check and say, I trust this person. I trust them to navigate the turbulent times because every single manager will have turbulent times.”