Reflections on fund manager performance

Steve Johnson

Long-term outperformance of a low-cost index fund is the only reason you should consider paying active fund managers like us the extra fees we charge. There is a paradox, though: the more you observe and assess our performance, the less likely you are to get it. We have been contemplating this conundrum since we started our business almost seven years ago. We are the longest of long term investors - prepared to hold a business forever if necessary - so how should we report to our clients? What is the right frequency? What is the right level of detail? We don't want to focus on short-term performance. But we also don't want to hide mistakes behind a cloak of "just hold on and she'll be right". We have tried to balance all of those factors in this year's performance report. Our solution is to only report on performance once a year, but to do it in more detail than most (right down to individual stock contribution). We would love to hear your thoughts (VIEW LINK)


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