At the end of September, another hedge fund titan called it quits, continuing a trend since the global financial crisis began in 2008. Whitney Tilson, a well-known name on Wall Street, announced the closure of Kase Capital Management because in his own words, “Reporting sustained underperformance…was making me miserable.” Just ten years ago, Tilson was one of the hottest names in the hedge fund arena, having outperformed the S&P 500 by more than 100% since his fund opened its doors in the late 1990s. Since then, the fund has underperformed significantly and his full track record now lags that benchmark. We highlight this article because the media gives a tremendous amount of attention to managers who have recently outperformed, and it’s important to understand that this is rarely sustainable. Even the best are vulnerable to losing their magic touch, and risking your financial future for the prospect of market beating returns can turn out badly. At Carlson Capital Management, we view these types of risk/reward trade-offs as unacceptable, and prefer methodologies that have been demonstrated to work over many decades.