Investment Advisors / Fund Managers

Investment Advisors / Fund Managers

Postby winston » Sat Aug 20, 2011 8:00 am

10 Signs Of A Bad Investment Advisor

In times of market turbulence, investors are apt to reconsider their relationships with their advisors, or reconsider their status as DIYers.

You may not make a move till things settle out, but it's a good idea to look with a critical eye
at the way your investments are being managed in this testing environment.

Excluding criminals, there are two kinds of bad investment advisors: well-meaning advisors without the wherewithal to keep up with the science of the fast-evolving profession, and those whose main focus is not on managing their clients' assets well, but on gathering
assets under management in order to grow their own practices.

How do you tell if you're sitting across from either one of these types of bad advisors?

In an industry that lacks transparency, it can be difficult.

Source: Forbes

http://www.forbes.com/sites/investor/20 ... =dailycrux
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Investment Advisor

Postby winston » Sun Jan 28, 2018 1:46 pm

14 REASONS YOU ARE BETTER THAN YOUR FUND MANAGER

Source: Quant Investing

https://www.quant-investing.com/blogs/g ... nd-manager
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Re: Investment Advisors / Fund Managers

Postby winston » Sat Feb 15, 2020 9:58 am

Form 13F and 13D

All investors who are managing more than $100 million are required to publicly disclose their holdings every quarter.

They have 45 days from the end of the quarter to file that disclosure with the SEC. It's called a form 13F.

First, it's important to understand that some of the moves deduced from 13F filings can be as old as 135 days. Filings must be made 45 days after the previous quarter ends.

Most of the meaningful portfolio activity is already well known. Many times, if we're talking about very large positions, they've already been reported in another filing with the SEC, called the 13D.

Here's what to look for:

1. Clustering in stocks and sectors by good hedge funds is bullish.
2. For specialist investors (such as a technology-focused hedge fund) I take note when they buy a new technology stock or double down on a technology stock.
3. The bigger the position relative to the size of their portfolio, the better.
4. New positions that are large, but under 5%, are worthy of putting on the watch list.
5. Trimming of positions is generally not predictive unless a hedge fund or billionaire cuts by a substantial amount, or cuts below 5% (which we will see first in 13D filings).

Source: Barron's
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Investment Advisors / Fund Managers

Postby winston » Thu Jun 01, 2023 8:14 am

Don’t worship your investment heroes

Avoid putting investment gurus on a pedestal; they are human and make mistakes too

by Royston Yang

But no matter how much you respect or admire an investment hero, you should stop short of putting them on a pedestal.

Here are several reasons why we should maintain a healthy relationship with the investment personalities that we see in the media.

1. Start and end each day with the latest news stories and analyses delivered straight to your inbox.

2. Everyone plays a different game

3. Every investor plays his own game and invests based on personal rules, objectives. and principles.

4. There is no point in following another investor who has a different set of investment rules, beliefs and processes.

5. Even then, you should view his or her buy and sell decisions as merely a guide. In Buffett’s case, 46 per cent of his Berkshire Hathaway stock portfolio is invested in one company: Apple.

6. Remember that no one cares about your money more than yourself.

7. You have the responsibility to play your own game and not deviate from your goals and objectives by following someone else’s goals – not even when they are your investing heroes.

Gurus not infallible

Micheal Burry: On Jan 31 this year, he tweeted the word “Sell”, and it was interpreted by his thousands of followers as a signal that the market will soon dip again.

Meanwhile, Seth Klarman, another popular billionaire investor of Baupost Group, predicted in June 2022 that the US Federal Reserve would “chicken out” at some point and stop raising interest rates.

In the mid-2000s, Bill Miller avoided energy stocks and also failed to recognise changes that adversely impacted his 1990s growth stock darlings.

In 2022, ARKK fund lost two-thirds of its value after suffering a 23 per cent loss in 2021.

Learn but do not follow blindly

Let us get one thing straight: It is perfectly all right to have investing heroes. These are people we admire and who inspire us to become better investors.

But we should stop short of worshipping them. After all, they are human and will make painful mistakes along the way.


Source: Business Times

https://www.businesstimes.com.sg/wealth ... ent-heroes
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