PT - JOURNAL ARTICLE AU - Joseph Calandro TI - “The Most Important Thing” Is Value Realization AID - 10.3905/jpe.2012.15.4.089 DP - 2012 Aug 31 TA - The Journal of Private Equity PG - 89--93 VI - 15 IP - 4 4099 - https://pm-research.com/content/15/4/89.short 4100 - https://pm-research.com/content/15/4/89.full AB - This article analyzes from a private equity perspective select lessons from Howard Marks’ recently published book, The Most Important Thing (Columbia University Press, 2011). Marks specializes in credit value investments, thus private equity investors may overlook the applicability of his book to their activities.Value realization requires a differentiated approach to strategy, focusing not only on value proposition differentiation—which is the primary focus of the strategy literature—but also on search and capital allocation differentiation and may not necessarily involve the use of “stretch targets,” commonly used today. Irrespective of the management approach, however, the primary activity is to manage the risk of value destruction.TOPICS: Private equity, VAR and use of alternative risk measures of trading risk, quantitative methods, portfolio construction