Portfolio Construction & Performance for New Investors: An Interview with Abdulaziz Hayat

Harvard University Finance alumnus Abdulaziz Hayat shares how the typical performance and behaviour of early-stage VC funds may shock finance amateurs. He elaborates how it is normal to lose around 20 to 30 percent of seed investments, including total loss of capital. Yet, even after such occurrences, it is entirely possible for a fund to return 3-4x its capital and allow fund managers to raise their next fund. The top 20 percent of a portfolio's assets account for 80 percent of all the returns of the fund.