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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (42083)	3/31/2011 10:02:09 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78670

re 3rd Ave - I agree with the fact that redemptions hurt their funds performance. Marty even kicked in a lot of his own funds in 2008 to boost the fund and increase the confidence of his shareholders. I think he is sincere. 1) The redemptions hurt because he is in a lot of illiquid positions. those were not necessarily the Japanese stocks (the stocks he owned there are liquid enough for his fund) but questionable (imo) situations like Forest City, Alicon, St Joe. 2) The redemptions forced him to keep a larger cash balance than he otherwise would have to avoid further liquidity situations. This hurt his performance in the recovery. Despite that, his performance in the recovery was quite good. The above shows me however that his funds are not recession proof. I expect that he may run into the same situation with the next market downturn, unless he changes his investment approach (unlikely imo).