A question I have been asking institutional investors in both private and public markets is - if they could enter and exit their holdings at will like retail investors(which they cannot today), would they have actually sat through the ride of their best-performing holdings? The answer usually is no. As counterintuitive as it sounds, maybe the inability to easily enter/exit large public or illiquid private holdings forces fund managers to sit tight, which is also why they can outperform retail investors who are always trying to time the market.

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