Author Topic: DiWORSEification: Avoid the Scourage of Overdiversification with Best Idea Funds  (Read 10350 times)

GrizzlyRock

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Ros812 - we are basically in agreement here.  The distinction comes if we are talking about an individual investing say $500,000 versus an institution such as a pension plan investing $10 billion.

For a small investor, one or two active best idea funds or one low-cost index fund is best. For the $10 billion institution this is impractical. Institutions desire to capture alpha across a variety of fund types and would be best served using best ideas managers in each asset class if they are selecting active managers.

writser - As mentioned in the preface, its a thought piece written by an investor for investors.  I built my firm using the the most probabilistic ex-ante methods to compound capital over time.


Yours Truly

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The best fund would be a compilation of a couple of superinvestors on Corner of BRK (ericopoly, packard, parsad, txlaw, etc) :)

jay21

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The best fund would be a compilation of a couple of superinvestors on Corner of BRK (ericopoly, packard, parsad, txlaw, etc) :)

From Eric alone the fund would be long 100% BAC
@jay_21_

Palantir

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Grizzly - is your fund a public fund or for qualified investors only?
My Portfolio: AMZN, PAGP, FSLR, OKE, PYPL, RHT, MSFT

stahleyp

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Grizzly, if you don't mind sharing, what's your AUM?
Paul

GrizzlyRock

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YoursTruly - not a bad idea whatsoever.  At one of my old funds we had a "paper portfolio" where each analyst and PM could pick just 2 positions.  It crushed the performance of our actual funds (although the "paper portfolio" wouldn't have fit our mandates exactly)

stahleyp and Palantir - I DM'd you responses.  Prefer to keep specific commentary out of the public sphere.

BTW - I'm an open book on ideas.  If anyone wants to chat idea offline or on the phone I'm game.