Outside a few large vehicles, the LIC space in Australia is very illiquid and hence can largely only be considered seriously by investors with very small funds under management. And as you highlight Dominic, the risks are generally under-appreciated currently by a market unwilling to spend sufficient money on due diligence and research (and which may not be justified in many cases given the illiquidity), and where manager and broker interests have too often been put first. Of course, the ease and accessibility is what makes this market attractive to investors, and made it so easy to forget about the potential hidden costs of investing this way.

On Looking out for pirates in LIC land -

Having predicted the market falls this year also, I can't wait to see the next article and how far Sydney needs to fall before it becomes fair value! The falls to fair value (or below) might be a lot bigger than most readers realise. There is good news in this though - hopefully Sydney will eventually become affordable to 'normal' hard-working productive people and their families so that they can live here 'adequately well' (poor building quality aside). Although the transition may be painful, these falls may finally kill the illogical love affair with Australian property and stop it being a huge source of wasted savings and capital - with the latter better directed elsewhere to support Australian productivity, innovation, investment, competitiveness and industry.

On How far is housing from fair value? -

Hi John and Mark Thank you for your comments. Performance needs to consider the risks taken to get that performance and whether it is sustainable. PoorIy performing managers frequently don't improve unfortunately - a deep researched understanding of the individual manager is required to make this assessment. My livewire article "Making money through the cycle" provides investors (through their advisers) with some pointers and ideas to help them carefully select the better alternative managers. I am also happy to be contacted by your advisers, and may be able to help advisers improve their offering to their clients. I will also aim to write more on selecting fund managers for Livewire in due course given the strong importance and expressed interest in this area, both from yourselves and from others directly contacting me.

On The Fund Manager Performance Fiasco Explained -

Hi Carlos Indeed, but hopefully this article provides investors (through their advisers) with some pointers and ideas to help them carefully select the better alternative managers, given what a valuable part of a portfolio they can be over time!

On Making money through the cycle -

This is fantastic to see a fund manager's efforts to publicly hold both AMP and the ASX accountable, and to consider the potential broader adverse impacts. Thank you Hamish.

On How the AMP board failed investors (again) -

Spot on Jon. There is no point betting very heavily on whether an expensive equity market goes up or not from here if you don't have to....There are other ways to make more resilient consistent returns with less downside risk which are much better aligned with most people's preferences (less likely to lose large amounts of money!)

On How to avoid Mr Market’s emotional problems -

Matthew, while you alone may have "no idea where prices will go in the short term" and "it’s impossible to forecast where things go next" it remains blatantly obvious that Sydney and Melbourne property have a very high chance of falling again in the short term, just as it was in the last few months.... Sorry, but that really is (once again) a very possible forecast to make!

On 5 key charts on the housing market -

Often promulgated is the notion that one can only buy equities or bonds or cash or some mixture of these, as if there are no other choices. Good alternative managers are an underappreciated option for investors, albeit to be effective one needs aligned managers who have genuine resilience to the downside, with an ability to still actually make good returns. Indeed, alternatives are routinely being massively under-utilised - due in part to a lack of skills and expertise on the part of allocators to choose the good ones - along with an unwillingness to be different (we might define this as putting yourself on the line for the sake of your clients rather than backing mainstream dogma). Too much rearview mirror investing (e.g. confusing a bull market with a notion that equities or properties or bonds or whatever always go up) also doesn't help...

On Bonds amplify equities' losses -

Rents - already great relative value for renters - are indeed falling in many places! Whether it falls 40% or 10%, housing appears a waste of capital.. From an economic perspective, what a shame Australian house prices have become so inflated at the expense of good productive use of our capital.

On 40% housing correction highly unlikely -