Strategy Follows Structure

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It’s been a big couple of weeks at Net Interest. After posting on LinkedIn that we reached 100,000 subscribers, social proof kicked up a notch and we quickly added another 1,000. It’s nice too when pieces you write grab the attention of their subjects. The newsletter is now read by top executives and founders across finance plus lots of people wanting to get up to speed on the sector in an accessible way. To all new subscribers: welcome.Subscribe nowIf Forbes ran a 30 under 30 list in 1957, Gerry Tsai would have been on it. Already well regarded within Fidelity, the young portfolio manager wrote a memo to Ted Johnson, the firm’s founder and his boss, proposing he launch a new fund focused on growth stocks. Johnson handed him $200,000 and told him to go for it.By the end of 1961, Tsai was managing $160 million, a six-fold increase over the previous 12 months. A market correction in 1962 hurt, but when the Cuban Missile Crisis was resolved that October, Tsai reacted quickly, buying $26 million in stocks over six weeks. His fund jumped 68% in three months, and by August 1963 had recovered all its losses. “All of Wall Street now watched Gerry Tsai’s every move, always certain the young manager was right,” journalist Justin Baer writes in his new book, House of Fidelity. “Tsai was a star, in many respects the mutual-fund industry’s first.”Reflecting his prominence, Tsai was rapidly promoted. He was named a vice president in October 1960 and was given an opportunity to buy non-voting shares in FMR, Fidelity’s investment management company. In 1963, Johnson upped his shareholding …