I purchased shares of FXI in January of 2006. It has also tripled.

I am an "asset allocation" investor - I do not try to beat anything; I am attempting to maximize my chances of average annualized returns.

FXI's trebling turned it into more than 5% of the portfolio. Just this week, I sold much of it during rebalancing. Some money still remains in FXI, because it and other emerging markets are part of the portfolio design.

The real question for you is: what are your goals? are you merely trying to have a stable growing portfolio or are you hoping to make a killing?

If it's the former, trim it back until it fits in with your original plans.

If it's the latter, good luck. You've already admitted that you know it's a bubble and this is a very expensive basket of stocks. Historically things that get beyond their fundamentals eventually have a day of reckoning. Almost no one is skilled at guessing that day until it arrives. Even then, many are in denial until long afterwards.

Compromise: Recoup your initial investment and put it somewhere safe. Then you're still "in" but the losses will hurt less when they arrive.