With the amount of volume that has been traded in Universal...

With the amount of volume that has been traded in Universal Biosensors in the past month or so it is clear to me that the main sellers are institutional player(s). I suspect there could be one or more but the main seller is JM Capital. Yes, the market has pulled back and investors may have started to panic and sell. The volume traded in UBI in recent weeks is coming from institutional holders, on May 11 - 2.25m shares were crossed for a consideration of $1.125m and the seller was clearly an institutional seller who must have been spooked by the steep fall and exited their position. I will eagerly await the next Top20 shareholder holding statement when it is released by the company & a notification regarding the change in substantial holding to be released under the company announcements section.

I would like to include below an extract that I believe is relevant to what is happening and impacting the UBI share price.

Fund managers fail to deliver the returns they could generate because they fail to back their winners with a sufficient share of their portfolio. Instead, they tend to think there is safety in diversification when in reality they are better off concentrating their portfolio.

Many professional investors over-diversify when they invest because they are managing their career risk. They are often judged by their bosses and employers based on how they perform against an index or peer group over a short period of time. This mitigates against concentrating investments in potential long-term winners.

The reason for the sharp and sudden decrease in the UBI share price (in my opinion) is due to an institutional seller liquidating their holdings in a winner and cement profits. The decision to do this may be due to the fact their other holdings in their portfolio have been performing poorly. Nevertheless, the ASX is an open market and whoever it is cannot sell forever. I continue to invest in my top highest conviction plays and UBI is one of them.

The reality, however, is that all you are doing is swapping one type of risk for another. You are exchanging company specific risk (idiosyncratic risk), which may be very low depending on the type of company you invest in, for market risk (systematic risk).

Risk hasn’t been reduced, it has been transferred