Despite your manager's best judgment and research, sometimes even conviction investments will result in negative performance.
A freak pandemic could hurt the business. There could be accounting fraud. The business could be the victim of a catastrophic cyber attack or bushfire. Your manager could simply have made an error on the investment case.
Please note that all profits, losses, outperformance & underperformance from your shareminder transactions with each manager are recorded in your shareminder account.
Some managers offer a performance fee credit which involves offering to manage additional shareminder positions from you for zero performance fee, up to the point where the dollar amount of your underperformance with on shareminder has been recouped.