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$1.1 billion sounds like a lot, but compared to that pension fund’s total holdings it’s only about 1% (https://www.cnbctv18.com/business/silicon-valley-bank-ale
by Someone 4y ago
$1.1 billion sounds like a lot, but compared to that pension fund’s total holdings it’s only about 1% (https://www.cnbctv18.com/business/silicon-valley-bank-alecta-sweden-pension-fund-stake-54-percent-wiped-out-16141121.htm https://www.cnbctv18.com/business/silicon-valley-bank-alecta...)
I would think/guess a pension fund should diversify its investments a bit more, but not the end of the world.
- rcme 4y ago1% is a lot for a single holding. And this is a realized loss as well.
- BaseballPhysics 4y agoWhich makes you wonder about their diversification strategy. 1% of their fund in a single, highly specialized banking entity seems pretty damn over-concentrated.
- reducesuffering 4y agoWell 1.2% of your SP500 fund is in JP Morgan and 1.36% is in Tesla.
- rcme 4y agoExactly. 1.2% in JP Morgan is a lot different than 1% is Silicon Valley Bank.
- MichaelZuo 4y agoAnd of 1.36% in Tesla?
- BaseballPhysics 4y agoI agree, Tesla is massively overvalued and is over-represented in the S&P 500 as a consequence, resulting in excessive concentration in an asset that's already significantly declined. JPM, by contrast, isn't a "highly specialized banking entity", and so doesn't earn the same level of criticism.