It's very important to understand a fund manager's motivation and risk parameters. Make sure your objectives align with theirs. If you're giving your money to an incredibly ambitious person who wants money, fame, and success in the short term, chances are their fund will underwrite a lot of risk, even at negative alpha. Confusing a fund that blows up with poor risk management is simplistic and often wrong. Beware of the wolf in sheep's clothing tho. On the contrary, an unambitious, humble, and relaxed manager will probably perform poorly, but will likely keep your money safe.