--- The below response is in reference to the Platinum...

--- The below response is in reference to the Platinum International Fund, not PTM ---

"I think of it like having insurance in a portfolio." - To some extent I agree with this.

Some time ago when I was first looking to find some good funds to anchor my portfolio in, I analysed the performance of a bunch of funds in the biggest bear markets, the GFC and tech wreck.

The Platinum International Fund was one of those that came out on top. While all the indices literally got chopped in half (top to bottom), most of the long only funds regardless of what they invested in went the same way and got chopped in half as well, give or take a bit depending on their cash holdings or better management. i.e. the majority of funds I looked at had losses from top to bottom of 40-60% which roughly tracked the market.

The Platinum International Fund I think from top to bottom fell 'only' 20-25%, I can't remember but it was in that ballpark and a standout performer in the mother of all bear markets.

The next part is also where it gets interesting... because it positioned itself well to not lose to much cash in a bear market, in the next phase - the recovery - they were positioned to do very well to do far better than many others.

In saying that, when I say, 'to some extent' I agree with the sentiment that the Platinum International Fund is like having insurance... you need to remember that it is their business to be invested, and as Kerr Neilson warned once... all fund managers himself included, are "
“institutionally bound to play the game until the last second. Keep than in mind when you’re ‘relying on the experts’.”

No fund manager will 'sell everything' and go all cash and gold or whatever, even if they truly believe the market is about to explode... because their clients will probably flee the fund and take their money out as they watch the markets continue to rise and froth up in the lead up to the blow off.

So the fundies are trapped by their own mandates, they will play the game to the last second as the sky falls in and try to get out when it's almost too late and there's trillions of dollars of cash trying to get out at the same time through that skinny little closing door.

Even if they think the market is going to go bust, they can try to hedge, short, find some moat in stocks that they think are antifragile or at least robust enough to live in the long term... but they will be exposed to losses.

The only advantage of some funds like Platinum International Fund is that they are likely to lose less than others in a bear market, but they will still lose.

I'm ok with that because it's too hard to pick when the markets are about to explode, and I'd rather stay invested and run that risk with that limited insurance.

Hope that all makes sense, happy to respond to any questions.