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Teh Hooi Leng calls it a day (Aggregate Asset Management)
05-07-2019, 09:30 PM.
Post: #151
RE: Teh Hooi Leng calls it a day (Aggregate Asset Management)
(03-07-2019, 09:48 PM)dreamybear Wrote: In the Business Times article(link below), Mr Kong says "In the last three years, we could find stocks that paid 7 per cent dividends, with a net book value of S$1, a share price of 40 cents and PE in single digit. Such stocks give us big returns and little downside.
Reference : https://www.businesstimes.com.sg/magazin...g-on-value

As a layman, I think they have done well. Smile  I am not vested(I am not an accredited investor) But I am dreaming of the day I can find such stocks with criteria defined by Aggregate !   Tongue

I think there will definitely be more lower-priced stocks found during market corrections. Maybe they got lucky and bought lots of good and cheap stocks in 2014 and 2015. During periods of market peace such as now, bargains will be few, or none.

Anyway, I think if an investor can meet the following conditions, his/her probability of success will be quite high.

1. Willing to accept a moderate level of return (maybe 8-9% p.a.) 
2. Able to not trade their stocks at least for 3 years 
3. Have sufficient ability to identify stocks that are able to provide stable & recurring dividends
4. Willing to diversify widely 
5. Possess cashflow to purchase more stocks during market corrections

I believe ghchua is one such person to have a very diversified portfolio of okay-quality stocks that pay regular dividends. Though ghchua's returns are not published, I believe they are close to a long-term average of 8-9% p.a..

Everyone can get returns like AAM or Inclusif. But because not everyone is willing (or able) to meet the conditions stated above, most get average results.

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06-07-2019, 09:45 AM.
Post: #152
RE: Teh Hooi Leng calls it a day (Aggregate Asset Management)
(04-07-2019, 09:47 AM)opmi Wrote: Focusing on value
Performance fee structure aligns with investor interests, says Aggregate Asset Management
TUE, DEC 05, 2017 - 5:50 AM

In the Business Times article(link below), Mr Kong says "In the last three years, we could find stocks that paid 7 per cent dividends, with a net book value of S$1, a share price of 40 cents and PE in single digit. Such stocks give us big returns and little downside.

I doubt AAM is following the above rule. Simply the AUM is too big. Imagine AUM $500m and 1% into 100 stocks. Minimum mkt cap for each stock will be $500m.
Mkt is surely more efficient at $500m than at $100m. Opportunity set surely smaller and more competition.

At bigger AUM, their old method may not work as well as when at small AUM.

Maybe should follow Walter Schloss. Keep AUM small and return excess profit.

hi opmi,
The ST article actually stated they have 633 stocks! So with their latest AUM of 460mil, that goes to 460/633mil --> 0.73mil per stock (on average).

At 633 stocks (wow!), they probably will do fine even at a billion dollars. Only doesn't work if add another zero to that.

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06-07-2019, 11:03 AM.
Post: #153
RE: Teh Hooi Leng calls it a day (Aggregate Asset Management)
With 633 stocks, I guess they must have relaxed their quantitative criteria and/or qualitative criteria or went outside their initial geographical coverage.

Guess it is a different animal from the one their earlier track record was based on.

How to cover 633 stocks....haha
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"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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13-07-2019, 10:00 AM.
Post: #154
RE: Teh Hooi Leng calls it a day (Aggregate Asset Management)
Which explains why they're hugging the index.

Once AUM gets huge, I guess the portfolio manager will need more WB-like type of stock selection skills to get above-average returns.

Graham-style investing is easier to implement for retailers, with more less-researched small caps within their reach.

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20-07-2019, 09:46 AM.
Post: #155
RE: Teh Hooi Leng calls it a day (Aggregate Asset Management)
I like this article written by Teh, published in today's BT:

https://www.businesstimes.com.sg/investi...unknowable

I like her principle of basing investment decisions on their mathematical expectation.

And basing, in part, those mathematical expectations on history that is relevant to the investment.

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