A portfolio manager investing in public equities makes an investment based on a view that prospects or earnings for the company are poised to improve beyond what is implied in the current stock price. But the portfolio manager isn’t taking an active approach in helping the company drive those future earnings. In contrast, a private fund manager is more engaged with the companies, providing guidance and input on the company’s strategy and direction, while also keeping an eye on risk. For example, the private fund manager may give input on products or capabilities the company should develop, a strategic acquisition the company should pursue, or new technologies the company should utilize.