Tying Concentration to Outperformance
by Jeffrey Bronchick
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.
Source: http://www.valueinvestorinsight.com/