What if my CEO makes a bad bet?
It will make bad bets, every fund does. What matters is what happens next: the loss was sized to be survivable, it's capped at that position's stake, and your CEO grades its own mistake so the next cycle is smarter. One bad bet should never be a story; a fund is judged over many.
Losses are in the business plan
A fund that never loses isn't trading, it's hiding. Your CEO's job isn't to be right every time; it's to be right often enough, at the right sizes, that the wins outweigh the losses over many cycles.
Why one bad bet can't sink you
Sizing. Your per-bet limits and conviction floor mean any single position risks only a small slice of the fund. The loss is capped at what the bet cost.
The part humans skip: the post-mortem
After each cycle, your CEO grades its own work, including the losers. Was the thesis wrong, or just unlucky? Was the size right? You read the same review in your reports, and the fund carries the lesson into the next cycle. Losses become tuition, automatically.