Sector, geography, and even general check-sizes are essential parts of a Fund's investment thesis and all have strategic considerations. Any related limitations on the fund managers' discretion in making investments usually derives from said factors, rather than the other way around - and these are typically baked into the Fund's Limited Partnership Agreement.

Other restrictions upon a fund manager's discretion in making investments will depend on their leverage, the size of the fund, demands from limited partners (particularly family offices and institutional investors), the domicile of the fund, requirements for investment committees, etc.

For small and emerging funds, there are often few, if any, of the above types of restrictions.