Last Thursday was opening day for MLB, a hopeful sign of spring. Catching up on some interesting 2023 statistics from our national pastime, we noted that Luis Arráez of the Miami Marlins won the NL batting championship with a .354 average. Astonishingly, this was Arráez’s second consecutive title. He topped the AL in 2022 with the Twins, becoming the first player ever to perform that feat back-to-back in different leagues.

Nicknamed La Regadera (“The Sprinkler”) for his exceptional hitting ability, Arráez struck out fewer than 8% of his plate appearances, compared to 25% for the average ballplayer. His batting average is also 100 points higher than the average. We raise this because it highlights the stark contrast between average and best-in-class performers.

Investors in private credit also focus on managers with low strike-out percentages who can hit to all fields. We’ve highlighted how media and some research outlets address topics such as defaults and recoveries. They cite data compiled from dozens of managers. But this is misleading. Investors don’t invest in all managers. They select the best based on a variety of factors.