Ann: Funds Under Management - November 2021, page-120

Another 12 months of underperformance and major institutional pullouts from the fund (20%+).

The pullouts will follow underperformance. A very poor 18 months is unlikely to cause institutional pull-outs simply because the damage has already been done and what is key is the long term, but 3 years of underperformance including -17% in single year is almost certainly going to generate discussions of where to look for greener pastures.

In the result that the stock hits those prices, it would be due to that large outflow of capital and therefore a large drop in a potential dividend yield and earnings.

The argument in a period of poor performance is typically that people should focus on the long term. Well that's a fine argument, but as I previously mentioned 17% underperformance destroyed a decade worth of outperformance. Give it a year or two and the short term crisis undeniably turns into a long term crisis.