Buy high, sell low?

Patrick Poke

Livewire Markets

Pengana Capital is closing their Global Resources Fund, Fairfax Media reported yesterday. Given the five-year bear market in resources, this comes as no major surprise. What was interesting, however, was the timing of fund withdrawals. As of May last year, the fund had around $30m of assets; by January this year, this figured had more than halved. If you watch resources, you might notice that this is around the time that resources began to recover. Gold, silver, lithium, oil, iron ore, zinc, and more have all posted strong gains since January. This is supported by Dalbar’s annual report, which shows that equity investors consistently underperform the funds they are invested in - buying high and selling low. “In 2014, the 20-year annualised S&P return was 9.85%, while the 20-year annualised return for the average equity mutual fund investor was only 5.19%, a gap of 4.66%” On a $100,000, this equates to a $419,680 difference at the end of 20 years.

Patrick Poke
Patrick Poke
Managing Editor
Livewire Markets

Patrick was one of Livewire’s first employees, joining in 2015 after nearly a decade working in insurance, superannuation, and retail banking. He is passionate about investing, with a particular interest in Australian small-caps.


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment