I am finally totally out of Hearts and Minds (HM1.AX). It was a great concept but a disappointing result. The concept was to invest in the "best ideas" of a small number of fund managers plus each year fill 35% of the portfolio with the pitches of invited managers at the Sohn Hearts and Minds Conference. And they donated to medical research instead of collecting management fees.
Based on the idea that fund managers fill a lot of their portfolio with second rate ideas in order to diversify and reduce concentration risk, picking their best ideas should work out well, no? There shouldn't be too much concentration risk because there are multiple managers and 30-40 stocks in the portfolio.
My realized internal rate of return was 7.3% p.a. for a total profit of AUD 63k. I first invested eight years ago at the IPO. Here is my profit graph:
I did trade in and out of it a bit. Did that affect my returns? They claim a 10.3% p.a. rate of return since inception, so the answer is yes. But 10.3% underperformed the MSCI World Index, which has returned 12.5% p.a. over the same period.
What will I do with the money? I could reduce my USD margin loan in the account or buy more crypto-related investments.
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