Portfolio managers at large firms feel obligated to hold an opinion on every stock in their benchmark index, which causes them to make low-conviction bets that dilute portfolio performance, particularly when they are wrong about non-core holdings.

causalpending

Speaker

Joseph Shapiro

Evidence Quote

What we found as portfolio managers as an analyst is our portfolio managers wanted to have an opinion on all of the companies in their index. All of them.

Source

The Compounders Hiding in Plain Sight | Joseph Shaposhnik on Finding Decade-Long WinnersExcess Returns
Created: 8/11/2026, 7:25:53 AM

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