Don’t lose money.  As Daniel Kahneman documents in Thinking Fast and Slow, people hate to lose money more than they care about making money.  Even aside from the emotion, some institutional investors and many individuals (e.g., those close to retirement) have a structural imperative to hate losses more than they value gains.  Sophisticated Money Holders understand that sometimes they are going to lose money. However, they expect Money Managers to have clear reasons and to perform within the expectations of their investment strategy, as well as to make money overall over time. Smart Money Managers address this need by focusing on risk adjusted return offerings, and articulating the tradeoff between risk and returns.  For example, Bridgewater’s Pure Alpha strategies allows investors to select different volatility levels based on their risk preference. Goldman Sachs Asset Management and Pacific Investment Management Company, LLC offer similar strategies.  Exceed Investments offers a set of index funds whose market differentiation is a structure to minimize the odds of a loss beyond a defined limit.