In our annual letter to shareholders, we examine the phenomena of momentum investing and the fear of missing out (FOMO). We also articulate pre-commitments we’ve made to mitigate these behavioral pitfalls.
Inevitably, we face pressure to bend or break our risk guideline pre-commitments when FOMO is greatest. But our long experience with these absolute limits—such as the benefits of maximum weights when there were downturns in China (2020), in Brazil (2006-7), in Emerging Market banks (2012), in the IT sector (back in 1999-2000), and minimum weights during upturns in the US (2004-5) and in Japan (1998)—serves as positive reinforcement for such discipline.
Investments involve risk and loss is possible.
The Portfolio’s investment objectives, risks, charges and expenses must be read and considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company. They may be obtained by calling toll free (877) 435-8105, or visiting hardingloevnerfunds.com.
The Portfolio is distributed by Quasar Distributors, LLC.