![]() ![]() No Fancy Sizing: Managers may have good stockpicking skills, but can be terrible at sizing ideas. ![]() Returns from the best ideas are usually diluted by a long tail of lower quality ideas. No Over-Diversification: Managers typically over-diversify.Investors can buy the stocks directly to access the manager's stock-picking skill. No Fee Drag: High base fees and excessive performance fees in some cases eat into returns. ![]() That said, it is possible for some clone portfolios to outperform the manager's actual portfolio over time due to the following factors: It may not be an accurate reflection of the manager's actual investment performance.
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