"Poor Celeste, it can be a tough game managing other people's...

"Poor Celeste, it can be a tough game managing other people's capital. The advantages the self-directed investor has over institutional money can not be overstated (despite everything you'll hear about 'bots' 'manipulation' etc...) -"


@eternalgrowth ,

Given a 0.95% base fee, plus a 20% performance fee, I assume that your "Poor Celeste" reference is made with a tinge of sarcasm.

Because those sorts of fees certainly provide a great supporting argument as to why one should learn to manage one's own investments, as opposed to outsourcing them to investment professionals.

On a less frivolous note, when you have a fund of less than $70m and it contains several really illiquid stocks, and due to your under-performance, you receive redemption instructions amounting to 10% of the size of your fund, then I expect that would present a real challenge to manage.

Because you would be a forced seller of some stocks, which would impact their share prices which, in turn, would perpetuate your under-performance, which might cause more redemptions which would force you to continue liquidating stocks, which would impair performance, which would... etc, ....redemptions... forced liquidation...under-performance...
A vicious cycle.

I'm not sure of the direct causality, but I have seen a few Celeste holdings that have been a bit weak in recent weeks.