Frequently Asked Questions
What is the club's investment strategy?
Members of 42nd.club utilize a strategy to manage the high risk nature of investing in Broadway by (a) spreading risk across multiple shows, rather than a single large investment in one show, (b) using their collective experience and analysis to avoid bad investments (there are many obviously bad investments that can be avoided along the way through collective analysis), (c) leveraging the contacts and network of the club members to obtain access to invest in the most highly coveted shows, and (d) choosing shows that have very strong commercial potential or that have the potential to obtain strong commercial success through anticipated Tony nominations and wins.
We've had numerous examples of shows where a club member wanted to present a given show to the club. As we went out to the club's large membership, we found that no one was interested so we passed on it. The show then went on to flop. And then other examples where we go out to the club and a lot of people want to do the show. The show then went on to be very profitable. There is a bit of a hive mind at work where, if we notice the club as a whole is hesitant to do a show, then we are not afraid to simply pass on it.