Where is the maximum expression? The concept of power law returns, although descriptive, should not be overvalued to the point of masking the true levers of action for portfolio performance.
It is not an absolute condition, but rather a statistical result that can be modulated.
In Hong Kong, exit opportunities via the HKEX or links with mainland China can weaken or strengthen this power law.
A less mature or more regulated ecosystem limits the emergence of these “unicorns,” making investment decision quality and active management even more crucial.
It is not enough to observe a distribution; one must shape it, for example by targeting sectors benefiting from regional support policies.