High prices have small-cap fund manager in cash


"Knowingly overpaying never has made sense to me, which I think people are doing," says small-cap fund manager Eric Cinnamond, notable for being up 14.5% at the midway point in 2009 vs. peers' average loss of 27%, but missing out on the bull market of the last three years thanks to his large cash holdings.

The small cap stocks on his radar are as "expensive as I have ever seen them," he tells the WSJ. "We're just unwilling to overpay with other people's mooney in high-quality, small-cap stocks."

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Comments (4)
  • heywally
    , contributor
    Comments (286) | Send Message
     
    "but missing out on the bull market of the last three years thanks to his large cash holdings.:"

     

    Yes, seemingly expensive but if you missed out on the last 3 years because of a "cash position", then nothing you do or say here is predictive in the least, no matter what happens.

     

    Any money manager who is ever 100% cash -- though this piece doesn't say he is -- is going to underperform the market longer term.
    7 Jul 2014, 01:58 PM Reply Like
  • Taibucko
    , contributor
    Comments (168) | Send Message
     
    He will survive the next market downturn--in the longer term.
    7 Jul 2014, 02:01 PM Reply Like
  • Taibucko
    , contributor
    Comments (168) | Send Message
     
    He will survive the next market downturn--in the longer term.
    7 Jul 2014, 02:01 PM Reply Like
  • Taibucko
    , contributor
    Comments (168) | Send Message
     
    He will survive the next market downturn--in the longer term.
    7 Jul 2014, 02:01 PM Reply Like
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