A trader works ahead of the closing bell on the floor of the New York Stock Exchange, June 19, 2019 in New York City.
Drew Angerer | Getty Images
Three weeks ago, we had a few of our worst days relative to the market in many months. How bad is very bad? To put this in perspective, when I managed a large mutual fund, gaining or losing 1/5 of 1%, or 20 basis points, compared to the S&P 500, would be a meaningful daily move. Now, with only 35 stocks in our portfolio, few of which are weighted close to the S&P 500, we can easily move 50 basis points in a day on either side of the market.
When we’re really hitting on all cylinders, or totally out of sync with the market, that amount can double. That’s great when the screen is green, but when we suffer a relative loss of 1% in a day, it’s enough to make me and any of my non-masochistic partners switch the screen views on our desk to old episodes of “The Office.”
So, on one of those particularly bleak days in late May, I began worrying (one…