Non-diversified funds that focus on a relatively
small number of stocks tend to be more volatile than diversified funds and the market as a whole.
Not exact matches
Because they have a
smaller number of shares outstanding, these
stocks tend to be less liquid, making buying and selling more difficult.
All
of which is to say, what these
numbers really tell us is that, in general,
stocks tend to perform below average in the year leading up to and during a recession and perform above average in the 1, 3, and 5 years following the end
of a recession (with the usual caveats that there are always outliers and this is a
small sample size).
Oakmark, Oakmark Equity & Income, Oakmark Global, Oakmark International Funds and Oakmark International
Small Cap: The Funds» portfolios tend to be invested in a relatively small number of st
Small Cap: The Funds» portfolios
tend to be invested in a relatively
small number of st
small number of stocks.
The Fund's portfolio
tends to be invested in a relatively
small number of stocks.
We expected volatility such as this when we launched the fund — the
small number of stocks and relatively large positions
tends to mean a volatile unit price.
Those metrics probably don't look too different from the ones used in smart - beta ETFs, with one key difference: active managers
tend to invest in a
smaller number of stocks (somewhere between 20 and 100 in most cases), whereas the passive ETF mechanically buys all the
stocks that pass the screen in a passive fashion.