Concentrated Portfolio
topic on 1 show · 5 statements across 5 episodes
5 statements about Concentrated Portfolio, every show
Dorsey: Concentrated Portfolios Cannot Tolerate Left-Tail Risks of Unpredictable Managers
“Especially in a concentrated portfolio, we have to think about that left tail risk differently than if we ran 50 stocks. If you run 50 stocks, okay, fine. I'll take a three percent bet on somebody who might be the most amazing manager of all time, but there's …”
Greenblatt: Concentrated portfolios face 20% to 30% drawdowns every couple years
“When you run such a concentrated portfolio, every couple of years, there are a few days where you lose 20 or 30% of your assets because one or two of your ideas aren't going your way. And that's just part of the way it works.”
Kraus: Concentrated portfolios produce better returns than diversified ones on average
“Are concentrated portfolios better than diversified portfolios? Yes. Is it a panacea? No. But on the whole, concentrated portfolios produce better returns, much more volatile.”
Marshall: True investment conviction requires running concentrated portfolios
“Because the only way to have real conviction is to really know something, and you only have so much of a brain to do that.”
Kochard: Manager underperformance is usually driven by operational or behavioral issues
“There's usually a correlation between bad performance And something else going awry. And so that's where it becomes a little more difficult in practice. There could be a situation where just bad luck that that concentrated portfolio produces a sort of an outli…”