Jason,

Love this series of articles.

As you've stated, creativity is about doing what no one else is doing. However, many funds (I'd estimate the vast majority) are rigid in their approach to the business. This "set in our ways" mentality permeates virtually every level of the typical organization: from the types of companies that a fund invests in to the research process (focusing on the same quantitative elements) to the kinds of people that work there. I agree that the reason most funds under-perform their benchmarks over time is precisely because of a lack of creativity.

Despite this I've found that it's difficult to win over others to a different way of thinking...even if such a change drove improved investment returns. I believe that alone should provide all of the necessary justification for "being different," but human nature (and my experience with it) says otherwise.

How can one overcome this resistance to change? To extend a metaphor: I would think that one would have to translate an idea, cultivated with one's creativity, into a language that a portfolio manager can understand...and then, over time, earn a greater degree of freedom to execute the research process as one sees fit. But what if this approach isn't feasible - say, if a good investment idea simply doesn't fit neatly within the investment manager's defined (rigid) boundaries?

Thank you in advance for clarifying this issue. Looking forward to the discussion on intuition!

Regards,
Ben