Hang in there, advisor!
If your clients’ investments are working out, or if they aren’t but you are convinced the investments are well run, stick with them.
Advisors shouldn’t be spooked just because China is having problems, volatility is once again upsetting many investors and some industry observers predict another crash.
That was the advice of a noted hedge fund manager at a recent conference in Manhattan.
Problems will always be in the market, but fundamental investing is good in any market, he said.
“What do we do? We simply hang on,” Larry Robbins, founder and portfolio manager of Glenview Capital Management, said at the 21st Sohn Investment Conference at Lincoln Center.
Robbins said fundamental investing is alive and well, and it would be unfiar to dismiss the style.
“If you’re going to criticize fundamental investing, you can’t then criticize it for short-term performance,” Robbins said.
His comments could have been interpreted as striking a discordant note. A number of speakers predicted bad times ahead, with one speaker, Stanley Druckenmiller, the chairman and CEO of the Duquesne Family Office, predicting another crash. Another participant warned that Saudi Arabia is on the verge of collapse.
However, Robbins argued that a good company could overcome short-term problems.
“If you own something in which the fundamentals have been good and the stock prices have been bad, just hang on,” he said.