William von Mueffling is challenging investor attitudes to
risk on two levels. Firstly he is raising the issue of the
right amount of risk that a fund should take. Many investors
seem willing to accept more risk from the two new Cantillon
funds than they are for most equity funds in their portfolio -
judging by the $1 billion of assets that they are throwing at
the double launch.
Secondly, he is questioning what is the right amount of risk
for a manager to take with their own personal fortune in their
own fund. Conventional wisdom suggests that they should invest
a large part of their own liquid net worth, but is von
Mueffling investing too much because of his own personal
tolerance of risk?
There is no doubt that investors who used to favor 'low
volatility' have now realized that it really means low returns
and are looking at ways...