Thread by @shyamsek

Improving quality of PF is a constant pursuit. Need Zealous effort to keep watch on own line up, order & weights.

As markets rise, the tendency to give this pursuit up takes over. Money comes easy. A loosening tendency evolves. Investing turns lazy. 1/5
#BeatingBenchmarks

Heavy fund inflows make a manager think less about returns and more about deployment. Too much cheese on his plate makes him less hungry.

He no more enjoys investing. Yet, his plate is always full.

He only finds ways to deploy. Returns become secondary. 2/5
#BeatingBenchmarks

For a while, returns happen by themselves even as rampant mirroring of PF's occurs.

So aping in buying gives near term returns too. Slowly, the entire herd move to graze in a small area.

That's when a Lion roars & moves to kill. Everybody freezes wet. 3/5
#BeatingBenchmarks

When nobody is ready, alert or watchful, the benchmark's sleeping lions wake up with a roar.

FM's lie in wait hoping its a false alarm. But, lions never roar and go to sleep without a good hunt.

Lazy FM's become easy prey. They long forgot to be nimble. 4/5
#BeatingBenchmarks

The swift move in 5 or 6 benchmark stocks is first watched. Once the move is significant, everybody jumps in making a stronger uptrend. Underperformance is cast in stone. No way to catch up. But, FM's say time will help knowing fully well it won't. 5/5
#BeatingBenchmarks