A contrarian mindset can allow you to see opportunities before the broader markets have acknowledged them. The goal: To enter underappreciated investments at attractive prices, and then exit once sentiment has rewarded them. This same mentality has allowed the Global Allocation Fund to avoid some “landmines” over the years and, ultimately, to survive in a competitive multi-asset category that has seen many others come and go.
5. “Do not allow analysis to trump common sense.”
When covering literally a world of opportunity, analysis is absolutely critical. But the Global Allocation Fund portfolio managers will be the first to acknowledge that the numbers do not necessarily tell the entire story—it’s the people looking at the numbers that make all the difference. And that leads to the next critical ingredient in Dennis’s secret sauce…
6. “Work with smart people.”
For Dennis and his colleagues, this has meant building a team of investors (more than 40 today) who both inspire and challenge one another’s assertions to arrive at what they believe to be the 700+ best investment possibilities available. For an individual investor, this might mean choosing high-conviction strategies with smart management teams that have a long-term record of success.
7. “Have fun, make money!”
Dennis has been focused on just that since he was a teenager in Kentucky overseeing his mother’s retirement assets. It’s the same spirit that inspires him to continue the journey he started with the Global Allocation Fund a quarter century ago.
To learn more about the Fund, visit blackrock.com/globalallocation. Complete performance information can be found here.
* Based on annualized standard deviation of monthly returns for institutional shares from 2/28/89 to 12/31/13, compared to the FTSE World Index. Standard deviation is only one element or risk. Other risk factors should be considered. USR-3597