Message Font: Serif | Sans-Serif
No. of Recommendations: 1
"In that context the higher floor today makes it a safer pick for a large allocation...for him, not his clients."

Jim, I think you're being a bit hard on professional fund managers with that last qualification, "... for him, not his clients." Clients themselves have preferences about safety and consistency of returns, and those preferences are often not the same as a pure value investor. Most clients care a great deal about volatility, even if the volatile investment is one that the fund manager assures them is "safe" in the long run due to how wide the margin of safety is. Respecting that common client preference, and helping your clients avoid the temptation to chase performance with their fund manger selections (which is usually a mistake) may not always maximize your fund returns, but it will help your clients maximize the returns that they actually realize.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.