Amazing read Philip.
great to see you backing up your views with such a move.
Very impressive. I am not expecting many of your competitors to follow your example.
I commend the conviction. But as an alternative to cashing your clients out, why not give them the option to stay in and protect their position with portfolio insurance? (unless of course your mandate prohibits you from doing so).....thereby not crystallising an adverse tax event for your clients and giving them upside should you be wrong?
Another comment sent from a Livewire reader: "Mr. Parker! I just read that you are liquidating your shares and giving back millions to your clients. Just wanted to say that you have a lot of integrity in doing so. I have tried talking to many, many people regarding the gloomy outlook (I live in the U.S. ) but am usually met with skepticism....That's awesome you are honest enough to do what you are doing!"
Mr Parker, Did you disclose you also previously closed your entity called Parker Asset Management in hasty circumstances ? As i recollect, you have been bearish on banks since 2012...and i have reasons to believe you fared poorly in 2012-13 such that you opt to close shop and re-brand yourself as Altair Asset management. You note you outperform your benchmark since inception. Yet, you were quite quick to close your Altair website down for further scrutiny of your performance in various periods. Using web archive sites, I notice you might not have updated your funds quarterly performance since Sept 2016 quarter. Did your fund suffer extremely poor Dec 16 and March 2017 quarterly relative performance? I find it extremely skeptical you really closed the fund due to your very public stipulated reasons. If you held such an apocalyptic view of the market - you could drop all fees (or to skeleton fee base to cover your bare bone operating costs) and provide an option to your clients to stay with your firm should they choose to. Irrespective, i do question your temperament capacity to manage people's money.
Mr Parker you may be right in your views, but many investment professionals get things wrong for periods of time. Perhaps the worst trait of an investor is to be so arrogant as to believe they can outthink the broad market with accuracy. Wouldn't a more prudent approach be to tilt your strategy and portfolios in line with your thinking, to take a more conservative approach in this apparent period of overvaluation, just in case for heavens sake you are wrong. I note that some for example have been calling the Sydney/Melbourne property markets overvalues for the past two decades.
Mr Parker, I love conviction. I demand it from all my managers. I wonder though, would it not be better (if subscribing to your view point) to cash assets in, and with client permission (and trust deed amendments) hold cash at a reduced fee and be ready to buy assets again when YOU consider it better value? Would that not be a better outcome for clients?
One man's trash is another man's treasure as Geoff Wilson launches WAM Microcap Limited seeking to raise $154m. Further down the conviction line would be to convert the fund to a "short only" fund and liquidate all your property assets. When the chatter grows louder about an impending correction, " too many risks", and publicly announcing the call the the media it's probably not going to happen. You need to start worrying when no-one is talking about it.