This month we speak to the narratives that pervade the investment ecosystem. Skimming through Damodaran’s “tribes” (storytellers and number crunchers) humorously reminds one of Twain’s “lies, damned lies, and statistics”. Yet the narrative plays an important part in a manager’s communication with clients and potential clients; after all, written commentary with supporting statistics can be pretty dry to fully digest. But what of the poor allocator drowning in a sea of narratives? They must recognize the stories, admit their attraction to them, and design a disciplined way to analyze and react to them.