Where is the highest yield expression? The hierarchy of venture portfolio performance factors is not a universal truth, but a construction heavily dependent on regulatory context and specific investment constraints in each jurisdiction.
The fact that returns follow power laws is a statistical observation, not a direct lever of action in our context; the quality of decision and the ROI ceiling are conditional.
In Hong Kong, the SFC's policies on cross-border investments or restrictions on eligible asset types for Family Offices can drastically limit the ability to exploit these power laws.
For example, limits imposed on direct investments in mainland China via official channels can make a power law strategy less effective, even if theoretically superior.