Where is the most complete expression of performance if we ignore that decision quality can be much more critical in constrained environments?
The idea that power law returns stably encompass venture capital performance factors is a simplification that ignores practical constraints and market dynamics.
In Hong Kong, the due diligence imposed by the SFC for cross-border investments, especially those related to mainland China, is not just a secondary variable; it becomes a determining factor.
Poor regulatory execution can turn a high-potential investment into a fiasco, making compliance much more influential than the potential for maximum theoretical returns, which is the risk asymmetry.
These regulatory frameworks and capital flows are primary levers, not just corollaries.