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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: JSwanson who wrote (5830)	3/13/2003 8:53:04 AM
From: Sun Tzu	Read Replies (1) \| Respond to of 25522

OT Fund Performance -- There is a secondary effect here. As the size of fund grows to be very large, the mechanics of the business force the fund manager to choose only the most liquid assets. As a result the character of the fund changes drastically. Peter Lynch was one of very few who did not do this. In one of his books he talked about how difficult it became to do a good job once Magellan Fund grew out of proportion. According to Lynch, his choice of vacation spot became dependent on the time zone so he could still be in touch with his staff before the open. In one case he used his lunch time while skiing in Swiss to call his office and go over every stock in the fund. It took two and half hours for that and his afternoon ski was almost over. And that shows just how many stocks were in the fund. But very few managers are willing or able to manage such a large portfolio. So instead they focus on beating the benchmark. ST