FYI: The money managers among them are “like a bunch of cod fishermen after all the cod’s been overfished,” Mr. Munger tells me. “They don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”
This same analogy may apply to institutional investors who overfished the illiquid, alternative investment universe by following David Swensen’s lead at Yale.
One of the best and worst parts about this space in my experience is how much sharing — of investment ideas, manager due diligence, best practices, etc. — there is amongst peers in the industry.
An unintended consequence of this sharing is an infatuation with the peer performance.
Regards,
Ted
https://awealthofcommonsense.com/2019/02/simple-vs-complex-2018-edition/
