More Stocks Doesn’t Necessarily Mean More Money Looking Beyond End-Market Diversification

Tying Concentration to Outperformance

Our ideal is 25 roughly 4% positions, though the reality varies around that. We believe concentration is tied to outperformance, but many institutional investors don’t have the stomach for our being much more concentrated than that. The way we look at it, if we can find five new ideas to replace previous winners or mistakes, that’s an honest year’s work.

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