Most [Many] investment managers are uncomfortable when the construction of the portfolios strays much from the S&P 500. Stock selection is often a byproduct of whether to underweight or overweight this or that industry relative to its makeup in the index. Those decisions, in turn, are heavily influenced by the near-term outlook. Everyone wants to belong to those groups that are “acting well” (going up fast) and underweight those that are lagging. Bill Miller, CFA June 1993
We believe that our best investment opportunities come from a behavioral edge, while other investors look for an informational advantage. We value research from uncommon sources to help us understand the market as a complex adaptive system.
