dan sundheim's fund returned 60% in 2020, one of the best years on wall street. one month later it lost $4 billion, about 20% of its capital, in january alone. it kept falling into 2022. this is what he told his investors at dinner three days after the bottom: "the trough of our drawdown was at the end of may 2022, and these dinners were scheduled for june 3rd. jeremy, the president of our firm, said to me, we can't do these dinners, this is going to be a bloodbath." "the message was that we were going to do things differently. not the stock selection, all of that was going to be the same, but the portfolio construction was going to be done in a way that was much less risk-prone. the analogy I gave was, we're going to hit singles and doubles. it might take us longer to get back to the high water mark." "even if the right positive npv thing would be to just keep taking a ton of risk, and obviously usually the best time to take a ton of risk is when you've lost a lot of money, emotionally I would not be able to go through this again. so we said, look, we're going to run the business differently."