Let's follow the incentive: who benefits from this narrative placing power law returns at the top of the hierarchy?
This classification overlooks that, for a pension fund like ours in Japan, decision quality and the upper limit of ROI are concrete levers, not just statistical observations.
The Bank of Japan's policy of controlling the yield curve, for example, has a much more direct impact on our allocations than the theoretical distribution of venture capital returns, as it shapes our investment environment.
Fiduciary mandates and risk aversion limit our ability to ignore specific constraints, making this hierarchy purely academic for prudent asset managers.
We cannot pursue unicorns if it jeopardizes pension payment stability, making capital security a priority.