Honestly, does it really change the cash flows for a pension fund like ours? The primacy of the power law is just hype, especially when our mandate constraints force us to focus on stable liability management and predictable returns.
We seek consistent returns, not massive successes that compensate for failures.
In Denmark, our prudential limits and the emphasis on liquidity prevent us from making big bets on one-off exits, regardless of their potential.
For example, an investment in a startup with unicorn potential, although fascinating, does not align with our goal of stable cash flows for retirees, unlike long-term bonds that ensure predictability for liabilities.