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- not losing money is usually more important than making it
Now, where have I heard that before... "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1."
Classic example of your second point being Tesla, it's stratospheric growth has caused many funds to to either re-think their single name and/or sector limits or regularly trim and take profits. And in the case of Baillie Gifford it's a massively outsized exposure to one name for the firm, I'm sure their chief risk dude has been having kittens over that.
- not losing money is usually more important than making it
ElGonzo
Belagerent
Tango130
Time in the market something something timing the market. I think where you get the most gain with managed funds is emerging market and special sit type funds where unique insights and knowhow can provide value beyond what the rest of the market can easily recognise.
A couple of other points spring to mind, 1. not losing money is usually more important than making it, 2. depending who it is you can also have compliance issues if a stock, or group of stocks in one sector, grow so much to unbalance the portfolio.
Still very interesting.