Please Explain, page-65

"I take full responsibility for my decisions and have NEVER tranferred the blame onto others. If i pay someone to do a job, thats what I want and expect just the same as if I were to get a plumber to fix a leaky pipe. If the pipe still leaks, he hasnt done his job. And neither has Justin Braitling. Thats not passing the buck or the blame, just pointing out that professional fund managers are paid to do a job, and in this case, I dont think thats happening."
Well said My sentiments exactly
What the f...... is "relatively significant holding "?
I have no doubt that this fund was "sold" in the past as ( at the very least ) to achieve a rate of return commiserate with the risk taken. ie significantly better than bank interest rates and at least equal to the the XJO which a poorly trained monkey could achieve.
If this low hurdle is unachievable for the present managers I do despair.
Having said this there will always be a place for such funds when mugs like me ( with 30 years of investment experience ) fall for the spin and some people believe that -40% return since 2014 is an acceptable return on their "relatively significant holding "
To put this in perspective.
If our correspondent at bought in @ March 2009 for 54c and held those share until today the return would have been been approximately 5 % pa
Not a stellar result for a fund manager where an investor had to be skillful enough to catch the stock at a 10 year low
If our long term investor had been successful enough to buy in Feb 2012 @ $1.00 he would have broken even over 6 years
Again Hardly a stellar result.
If our skillful investor had simply invested in an index fund he would have achieved an average 10% pa. ( excluding dividends of approximately 4%pa )
This is called opportunity cost.!!!!!!!!!!!!!
To put this in simpler terms lets assume a reasonable fund manager can beat the index by 2%pa ( not a big ask I would think) and our fund manager invested $10,000.00 in March 2009
Today that $10,000.00 would be worth approx $ 40,600.00
Our skillful long term investor, picked the bottom of the GFC and decided he would invest his relatively significant holding with ALF and with tremendous faith decided he was in for the long haul.
Today that $10,000.00 would be worth approx $ 13,500.00
So unless our skilled correspondent has dipped in and out he is now looking for a $300% turnaround
over the next twelve months to justify his initial risk. ie the XJO plus div 4% + 2% out performance.
Assuming of course that he bought in at $ . 54c
I;m not holding my breath