Yes, holding cash during a bull market equals recipe for underperformance. Which leads to the fund manager being replaced with somebody more aggressive. 6/10/14
I read years ago that a lot of mutual fund prospectuses require a minimum investment % (maximum total cash %). This, along with career risk for managers, is probably responsible for the "low" cash levels. 6/10/14
But the point is that they did raise cash after the market compelled them to in 2008, for example. So I guess they suddenly value cash when everyone else is getting killed too. 6/10/14
Right, so they have min. % requirements until the shit hits the fan and they, like everyone else, is losing other peoples' money and they then change the requirements to meet the redemptions of said OPM's. Yeh, that's a great business plan. Unbelievable. 6/10/14