Like most things, people exaggerate.

At a fund-level, for early stage investing, 2x net of fees is “good enough” to earn another fund, and 3x net of fees is top tier.

The very, very best funds do 8-10x net (sometimes much higher in tiny funds), but even then, often the following funds revert a bit to the mean.

So, it turns out what a top portfolio investment is … is pretty simple.  It’s one that “returns the fund” — in profits.   100% of the size of the fund in gains.  Then you are half-way to 2x.  I.e., an investment that returns $100m in profits to a $100m fund is a big, big deal.  Then you are in the money.

Any investment that returns >=10% of the fund in profits is still material to the fund.

Less than 10% is immaterial.

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