Keeping Enough Ideas to Counteract Bad Outcomes Maintaining Strict Diversification Rules

There’s More Than One Form of Active Portfolio Management

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People tend to assume that the only form of active portfolio management is through relatively concentrated portfolios. We think there's an equally legitimate form of active money management in running a diversified portfolio that has nothing to do with the benchmark. Our mandate is first and foremost the return of capital, which has also so far resulted in above-market returns. With that man date, we don't want a concentrated port folio that bets the farm on a few stocks. This year has been an excellent reminder of how valuable diversification can be as a risk-management tool.
Source: http://www.valueinvestorinsight.com/

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