Concentrated Managers

topic on 1 show · 3 statements across 3 episodes

Capital Allocators

3 statements about Concentrated Managers, every show

Jenkins: Concentrated liquid managers induce poor investor behavior via volatility
“Concentrated managers works against that because they do tend to have much bigger swings in performance, and it can lead to really bad investor behavior if it's a liquid manager.”
Meredith Jenkins Sep 19, 2022 ▶ 51:20 Friends Reunion 2 – Five Allocators Riff on Investing with Meredith Jenkins, Casey Whalen, Brett Barth, Jon Harris, and Ted Seides (Capital Allocators, EP.271)
Druley: Cambridge favors concentrated managers because it can diversify idiosyncratic risk
“Tend to many cases to have a bias towards concentrated high conviction managers. We can diversify out their idiosyncratic risk, and we've had great success in identifying those managers”
David Druley Aug 19, 2019 ▶ 32:57 David Druley – Structure into Action at Cambridge Associates (Capital Allocators, EP. 106)
Kochard: Manager volatility matters most when it poses existential business risk
“With that said, what could be a problem is if the manager themselves, the volatility that they're experiencing, does that cause their business to suffer? And so there's, it's an existential threat to the organization. So, so It could very be right that if you …”
Larry Kochard Jun 12, 2017 ▶ 33:08 Larry Kochard – Endowment Professor (Capital Allocators, EP.11)

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