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Wouldn't the effect of, say 15 of your picks underperforming(good for you) be dwarfed by the other 480 ones performing the same? Couldn't you simulate this fund
by oh_sigh 7y ago
Wouldn't the effect of, say 15 of your picks underperforming(good for you) be dwarfed by the other 480 ones performing the same? Couldn't you simulate this fund by buying s&p index fund and buying puts on your 15 picks?
- reascenda 7y agoIt's actually the other way around, at least historically speaking. Typically a very small number of names account for the lions share of the index return.
- kasey_junk 7y agoJust to add an important note, this is true but it’s different names for different people depending on when they enter & exit the index.