“At all times, even weird ones like this, we worry mostly about earning a good risk adjusted total return. That has always been the goal of our strategies and the team that runs them. Aiming for a specific total return in the short-term is tricky because if your investments require more certainty about the timing, you are almost certainly giving up some piece of total return. With the supply of stock reasonably given in the short term, lower certainty brings lower demand for the shares, and lower prices. More certainty brings the opposite. We are often uncertain about total return in the short-term, a risk we bear that helps drive our total return in the long-term. This uncertainty around timing is different than the uncertainty around survivability, an octane-fueled potential return source that we avoid. It might be worth mentioning that the standard deviation of our monthly returns is below that of our benchmark.”
Read Kevin’s piece on Seeking Alpha here.