Ann: Funds Under Management - December 2021, page-74

Hi @SP007

Agree 100%. I’ll have to look into PTM’s current holdings more, it has been a year or so since I sold out. They are less concentrated too.

Kerr is the only asset manager in Australia to have used options to protect FUM historically - BT in 1987. There may have been others (happy to be told who), but the only one’s that can say they have experience in actually protecting the downside.

I don’t know why he hasn’t taught Platinum’s current CIOs how to protect the downside this way. A bunch of puts that are out of the money by 10% and expire in 12 months will be adequate against a 30% market fall. They should cost less than 5% of the portfolio and means that they can enjoy some upside performance by deploying all of the cash.

Best of Luck
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