How to fund managers mitigate dips?

#1
I've always wondered that in a trending bear market how do fund managers handle investments? Do they exit and park cash in bonds or there is always some stock that will be moving upwards even in a bear market?

Thanks
 

travi

Well-Known Member
#2
Its managed/hedged upto a certain level and sometimes even gets beaten up.
Check all the funds during bear markets like 2007-08 etc

In Nov-16, even Debt funds dipped a lot.

You'll never single out a one consistent winner, all rules of the markets apply to them as well, no one is immune to a large sell-off :D
 
#3
Its managed/hedged upto a certain level and sometimes even gets beaten up.
Check all the funds during bear markets like 2007-08 etc

In Nov-16, even Debt funds dipped a lot.

You'll never single out a one consistent winner, all rules of the markets apply to them as well, no one is immune to a large sell-off :D
Makes sense however if a fund manager *knows* the market is going to hit rock bottom say for the next two months, do they maneuver rapidly like a retail investor or just battle it out?

Just curious :)
 

Subhadip

Well-Known Member
#4
Makes sense however if a fund manager *knows* the market is going to hit rock bottom say for the next two months, do they maneuver rapidly like a retail investor or just battle it out?

Just curious :)
Hedge it fully.....
 

travi

Well-Known Member
#5
Makes sense however if a fund manager *knows* the market is going to hit rock bottom say for the next two months, do they maneuver rapidly like a retail investor or just battle it out?
Just curious :)
If we assume then we'd get no where :D
so no one knows when it will bottom out until bottom has passed.
Various ppl get it right sometimes, but not always.

So apart from hedging, everyone liquidates slowly and injects slowly else they'd be left out.
They rather be wrong with the majority then to be wrong alone. If a Fund manager dumps everything and the market moves against him/her, imagine FMgr and the Boss fuming.
 

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