"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.
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