FYI: In 2006, the San Bernardino County Employees’ Retirement Association made a decision that it credits with adding nearly $1 billion to its portfolio over time.
The fund did not hire a particularly talented manager or bet big on a hot new asset, but rather improved its investment process — specifically, how its nearly $10 billion portfolio gets rebalanced.
Rebalancing is a necessary aspect of institutional investing, the means of ensuring the actual makeup of a portfolio matches its target allocation. But it can be costly: sell equities on a down day, and those losses are locked in.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1f16mbgypgmqm/How-One-Small-Pension-Fund-Added-1-Billion-in-Value
