How A $4 Billion Fund Plays Defense
What most retail investors don’t know is that there’s a secret sauce to all this.
And a lot of luck.
Really good money managers are probably only right 60 percent of the time.
Of course, no fund management firm is going to reveal all their secrets. These are complicated investment models, followed by analytical research. It can be bottom’s up (stock picking) or top down (country picking), and is almost always a blend of both.
Whatever it is, fund managers stick to their models in good and bad times. It’s called discipline. And faith. And maybe flying on a wing and a prayer, but when sometimes prayer changes things…
I spoke with Peter Newell, a managing director and senior portfolio advisor at Vontobel Asset Management about how to play defensive without being necessarily a low beta buyer. How do investors avoid losing their shirt in trying times like these.
We focused on his Virtus Emerging Markets Opportunity (HEMZX).
http://www.forbes.com/sites/kenrapoza/2012/07/03/how-a-4-billion-fund-plays-defense-in-tough-times/print/
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