1. Hamish is quite a sharp dude, but he is not inviting to new ideas. It would be nice if to see if fund managers these days became humble and acknowledged that most of the performance success was contributed by multiple expansion rather than their near perfect capital allocation.
2. I've seen institutional clients' true colors. They don't think like most people. They usually look at underperformance of where their fund is and tally that up with their own benchmark and work out how much they've lost by not moving money from one to the other fund. More like an opportunity profit.
3. The way the fund is run. I understand that MFG wants to have the best risk adjusted returns, but there are statistically proven strategies which are way more profitable than others. Example, running a long-short fund.
This is the most profitable way to run a fund if you are on fractional fees compared to others.
For disclosure; I've done modeling on various portfolios and charge clients for that work. If you can marry a long-short strategy on algorithm, then you are doing well, running it like a quant fund. They are technical ways to avoid Black Swan events there as well. MFG is stuck with old ways despite having the most capital to invent new ways.
I'm a nobody and why would MFG run their fund the way I see fit, but times and expectations are changing.
We are looking at real possibility of equity multiple unwind for upcoming years, so I'm not sure where MFG is going to find growth from.
Ship is harder to turn around.
MFG Price at posting:
$20.96 Sentiment: Hold Disclosure: Not Held
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