MHH Portfolio Discussion, page-8

I noticed you hold MGF too. Is the holding in both just a legacy of the partnership offer when MHH listed? I always hold both and am considering consolidating into one of the funds. I’m leaning towards selling MGF and adding to MHH.


@cutty
regarding the concentration:

The concentration of MHH is too risky if you had your entire net worth invested. I have 13% of my money invested in MHH which means the look through exposure to each individual holding in MHH is very small. For example if 14% of MHH was invested Microsoft, my personal exposure is to Microsoft is only 1.82%.

The problem with most funds is that they are run as if the fund represents 100% of the investor’s portfolio, when in reality it is likely only a subset. Fund managers want to avoid career risk and do so by diversifying.

I am happy with the concentration of the MHH portfolio and believe all funds should be operated with similar conviction.