Good post. I too think there is a bit of herding amongst value type managers in Aus, but is that any surprise? Its a pretty small pond.
With regards to idea generation, I also really like LT's approach, which is essentially a heap of reading, and being able to screen and review companies very quickly(I've got a bit of money with Lyall). Having said that, idea generation is idea generation and if that comes via a snippet you hear on a podcast, or after reading anaylsis on HotCopper such as here, we shouldn't ignore anything. But for those of us who aren't full time managers, idea generation is even more difficult. I don't think we necessarily need to scour the globe to get returns in excess of money in the bank, but staying within a circle of competence is important, as is being patient.
Other active managers like platinum are pretty differentiated I think. Also looking at LICs could help. I bought LSF recently at about a 20% discount to NAV. ps If SDI is a very average cyclical (returning almost 100% in one year) then I'd love someone to find me some more!
SDI Price at posting:
72.0¢ Sentiment: Buy Disclosure: Held
