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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: accountclosed who wrote (54020)	3/31/1999 11:24:00 AM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

AR, That could happen. Especially squeezed are the indexers or closet indexers, which are currently huge in the market place. The indexers have to either buy the index or index futures with most of the cash they receive. The closet indexers usually have a very narrow avenue of intellectual input into their portfolio. I have known of many firms where a committee says, "you will have no more than 5% cash." In fact, that may represent the majority of firms nowadays. So, if you are holding cash waiting for a downdraft, and the quarter's end is approaching, you may feel pressure to put the money to work. Also, the cash itself tends to clump in at quarter's end or at the start of the next quarter. I was lucky. I never worked at a firm where I had much in the way of guidelines until the very end of my tenure at American Capital, and even then it wasn't an investment decision. It was a marketing decision and was the reason I left the firm. I just don't see how anyone can expect a portfolio manager to perform if he is in a straight jacket. But, the truth is, most firms don't trust their managers, and probably for good reason, so they like the restrictions. They think every manager is a potential George Custer, when they don't realize that their restrictions eliminate potential George Pattons, too. <g> MB, AKA George of The Jungle <g>