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Komfie Manalo, Opalesque Asia: Investors should consider a fund's portfolio and its diversification not just on a stand-alone basis but also within the context of the investor's overall portfolio, said Henri Österlund, founder of activist investing firm Accendo Capital, at the latest Opalesque 2017 Nordic Roundtable held in Stockholm.
Österlund said that investors should force their fund managers to be "naked in front of their strategies" and not automatiically give them the luxury of being diversified. This would make fund managers fully responsible for their trades and not "blame South African miners or Chinese trade or Trump or anyone else for their poor performance."
"Rather, each manager should have a clear-cut strategy to follow, that he is picking up each morning when he goes to work and where he has to perform."
Österlund added that he occasionally debates with potential investors, who might say to him that, "Well, you have four names in your portfolio, it's not diversified enough, so we cannot invest." He added, "I would accept that argument from a small investor with no other equity exposure, but of course the investors we talk to are investing millions or billions, so they are already well-diversified. As a fund manager, I would sleep better at night having a diversified portfolio. But that benefits m...................... To view our full article Click here
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