I will be studying Portfolio Fund Management next year for uni, and I thought I could start a thread that discusses/analyses different types of funds, styles, returns, fees, etc.
I'm assuming that most people who invest in managed funds probably wouldn't bother looking at individuals stocks and hence wouldn't end up on here. But there are many users on here with great knowledge that could contribute.
To start things off I'm currently looking at the Wilson HTM Priority Growth Fund. It returned to October 31, 2010:
29%p.a. for the period since inception July 4, 2005 versus the benchmark ASX Small Ords Index of 6.3%.
Also has a 5 year return of 21.62%p.a. v. Benchmark 4.91%, and a 3 year return of 7.13% v. Benchmark -10.06%.
These figures are quite impressive, beating the index convincingly. However, looking at the attached graph this fund lost over 50% during the 07/08 GFC - I'm sure most funds and most investors had similar results. I'm really interested to see how funds deal with risk. Most funds would use 'buy and hold' strategies and use diversification as risk management, but is there anything else that they could use? To me diversification doesn't really hold up when the entire market goes to sh%t.
Could you implement technical risk management into a large fund? (Position sizing based on stop loss and overall portfolio value)