A Day in Paradise » Finance http://www.wormus.com/aaron according to my observations, there is now sufficient reasons for greater optimism Sun, 29 Aug 2010 09:00:00 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Mistakes that Money Managers Make http://www.wormus.com/aaron/stories/2009/01/05/mistakes-that-money-managers-make.html http://www.wormus.com/aaron/stories/2009/01/05/mistakes-that-money-managers-make.html#comments Mon, 05 Jan 2009 13:48:52 +0000 Aaron Wormus http://www.wormus.com/aaron/?p=1534 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

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