, Columnist
After H2O, Three Red Flags for Investors
Three quotations, two lessons for investors, one plea for regulators.
In investing as in haute couture, fashions fade. Style is eternal.
Photographer: Reg Lancaster/Daily Express/Getty Images
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On the face of it, H2O Fund Management’s speed in reducing its exposure to illiquid securities should stanch the outflows that saw more than 5.6 billion euros ($6.4 billion) exit in just four days. But after Neil Woodford and GAM Holding AG both froze funds that owned hard-to-sell securities, investors are in no mood to risk becoming trapped behind a gate. They might avoid this in future by keeping in mind a few pearls of wisdom:
1) “Size is the enemy of performance.”