A Day in Paradise

Cameron Hight posts a list of the top mistakes that money managers make:

1. Confidence Bias- only search for information to support your thesis
2. Good Stock Paradox- as expected return decreases, firms up exposure
3. Value Trap- limited downside with no inherent upside
4. Risk/Reward- misconception that greater risk is required for higher returns
5. Dealing with Losers- must analyze losers through process, not results
6. ETF Hedge- improper use of ETFs as a hedge
7. Best Idea- must make your best idea your biggest position
8. Position Overload- better to have less positions with more positive returns

More from Cameron over at the HedgeCo.Net Hedge Fund Blogs