Quitting at the bottom of the market

A lesson on a favourite Bogleheads phrase Stay The Course?

The psychology of this fund manager is what a market may look like at the bottom.

This guy just closed his China fund . . .

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. . . days before Chinese authorities announced stimulus measures.

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Only managed to gather $300m AUM since 2020 and they probably just assessed that they would be unlikely to continue to grow AUM after poor performance making the fund unviable.

Just another classic active fund manager behaviour. Shut it down if the big bets don’t pay off.

 

A lesson on why bogleheads who ever they are are wrong and why chasing low fees is penny wise but not pound smart. Some times you shouldnt stay the course, and cut losses. When you realize your strategy sucks, that trading based on sentiment sucks and that your thesis is busted, off course you should shut down. Then perhaps you could buy companies based on fundamentals. Probably had no choice if they charge no entry or redemption fee, I presume fees were performanced based so had no funds to continue operating. You get what you pay for. Obviously alot of the investors woke up and decided it was best not to stay the course, and those that didnt are left holding the bag.

 

Not sure how this actively managed hedge fund has anything to do with bogleheads. They wouldn’t be invested in it to have to consider throwing in the towel.