Portfolio managers shun investing in own funds

Do fund managers with 'skin in the game' perform better?   Although this article and accompanying reserach is a few years old, it unsurprisingly confirms that portfolio managers who are invested in their own strategies perform better.  More specifically, those managers who are heavily invested perform even better. 

This aligns with Saxe-Coburg's practice of only investing in funds where the manager has a significant portion of their liquid wealth invested in their fund.

READ MORE

 

The Big Short

 

Michael Burry, made famous in "The Big Short" with his bet against the housing bubble has identified another trade.  To read the Bloomberg article by Heejin Kim and Myungshin Cho click here.

The Great Rate Debate

The Great Rate Debate

As expected, both the Reserve Bank of Australia and the US Federal Reserve cut rates by 25bps in July, to 1.0% and 2.25% respectively.

Read more ...

Questions to ask your Fund Manager

One of the managers we have selected in King Tide has written a note on "Questions to ask your Fund Manager". We concur with many of the points he makes, including:

"Most fund managers claim that preservation of capital is the priority.  We have not yet come across a fund saying risk-taking is more important than capital preservation.  However, most funds do not have the flexibility in their investment mandates to actually preserve capital.  If a fund can have a maximum of 10% cash and not able to hedge using derivatives, then there is no way this fund can preserve capital in a severe market decline".

To read the whole article, click here

Questions to ask your Fund Manager

One of the managers we have selected in King Tide has written a note on "Questions to ask your Fund Manager".

Timing the Market

We have recently added Firetrail Absolute Return Fund to our portolios.

Patrick Hodgens, Firetrails Managing Director explains why "Timing the Market" is a nice thought, but difficult in practice.

If you’d like to keep up to date, join our newsletter subscription below

Contact Us

Our Office Location

437 Lake Road
Takapuna
Auckland
New Zealand