Welcome from Chris Cuffe
I rarely mention my own Australian equities fund, the Third Link Growth Fund, in these pages, but this week marks its fifth anniversary. Over that time, we have donated over $2 million to charities and delivered 8.8% pa to investors, outperforming its benchmark by 4.1% pa. We are able to pay the management fee, net of expenses, to charities because the investment and administrative professionals involved (including me), as listed on the Third Link website, provide their services for free. I’m very grateful for their support.
I believe that after three decades in this industry, I have developed a skill in selecting good fund managers, so I don’t pick the stocks, I pick the fund managers. They manage the money within a ‘fund of funds’ structure, and I stand back and try not to judge them quarter by quarter, but take a long term perspective over many years. I love the win-win for everybody. Good returns while doing good.
It was interesting to read that a Swedish author and hedge fund manager, Magnus Angenfelt, has just released a book after five years of globetrotting to find the 99 greatest investors in the world. Four Aussies made the list: Kerr Neilson, Anton Tagliaferro, the late Robert Maple-Brown and Sir Michael Hintze, who we featured in this article. Well done for their long term excellence, and it confirms my view that there are talented investment managers who can outperform the market consistently over time.
Dark pools sound both mysterious and almost sinister, and Graham Hand interviewed Seth Merrin of Liquidnet to find out more. It is important for all fund investors that execution is done as efficiently as possible, and the development of global trading platforms will improve the ability of local managers to buy both local and foreign equities. Only 2,000 of the 45,000 listed securities in the world are in Australia.
Ashley Owen has a love-hate relationship with mining companies. In this personal reflection on the last decade, he explains why he started investing in resources 10 years ago, and why he has almost exited the sector. The sell decision is probably even harder than the buy.
Listed general insurance companies are complex beasts, and Roger Montgomery takes a look at their special characteristics and why they're tough to value.
The superannuation industry is increasingly turning its attention from the accumulation phase to post-retirement, and Deborah Ralston outlines the features of a portfolio that addresses the needs of retirees.
And it's no surprise the regulators are keeping an eye on SMSFs. The Reserve Bank has three early warning signals for financial instability in a sector: rapid growth; a target for spruikers; and a potential investor protection issue. SMSFs tick every box.
Chris
Latest posts from Cuffelinks, 25 Oct 2013, Edition 37
- Designing a world-class post-retirement system Deborah Ralston
- RBA on FX risk, super diversification and watching SMSFs Graham Hand
- Analysing the black box of general insurance Roger Montgomery
- My personal perspective on 10 years of the mining boom Ashley Owen
- Shining a light on dark pools: interview with Seth Merrin Graham Hand
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