Everything Wrong With Investor Behavior in One Article


In a certain market environment fueled by excess liquidity or excessive exuberance, Investment Managers can generate very high returns by taking very high risk. These returns will last only till the music lasts. Once the music stops and investors get a reality check, they lead to a wipe-out risk. A 12% CAGR over a 15 year period with a draw-down of 80% in the 16th year leads to a total CAGR of 0% over a 16 year period. Thus, in analysing investment performance, it is important to look at risk-adjusted returns rather than only pure returns. We, at Multi-Act, are focused on generating high returns per unit of risk rather than just high returns.


About Multi-Act

Multi-Act was founded in 1997 by two Wharton graduates, to develop an Equity Research capability for their own investments. Today, we employ 50 people who operate out of our offices in Mumbai and Pune and service a range of clients from wealthy families, family business owners to sophisticated investors and capital intermediaries around the globe.

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Know why our clients believe that we help them to not only preserve their valuable capital but also generate more than adequate risk-adjusted returns.

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