Story of the Hare and the Tortoise

In recent years, we have constantly been reading about how stock markets have been rallying and this in turn has been resulting in fund managers having a headache (LINK). Why? Clients when comparing the fund’s performance and the Index’s performance would probably only see a marginal difference. Perhaps the fund may even underperform the index net of fees. Furthermore, this has resulted in managers ‘closet indexing’ (LINK) and this phenomenon has been on the rise (LINK). Hence, this led me to think of a story that we are all very familiar with.

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The Hare and the Tortoise

The Hare was once boasting of his speed before the other animals. “I have never yet been beaten,” said he, “when I put forth my full speed. I challenge any one here to race with me.”

The Tortoise said quietly, “I accept your challenge.”

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RGA Investment AdvisorRGA Investment Advisor commentary for the second quarter ended July 2020, titled, "The Tale of Two Markets." Q2 2020 hedge fund letters, conferences and more In our Q1 2019 commentary we expressed how “COVID-19 will kick off one of the most profound reshaping of our world any of us will see in our lifetime,” accompanied Read More


“That is a good joke,” said the Hare; “I could dance round you all the way.”

“Keep your boasting till you've beaten,” answered the Tortoise. “Shall we race?”

So a course was fixed and a start was made. The Hare darted almost out of sight at once, but soon stopped and, to show his contempt for the Tortoise, lay down to have a nap. The Tortoise plodded on and plodded on, and when the Hare awoke from his nap, he saw the Tortoise just near the winning-post and could not run up in time to save the race.

Then said the Tortoise: “Plodding wins the race.”

– Aesop Fables

“Value wins the race”

Very much like the race between the Hare (Mr. Market) and the Tortoise (Fund Managers/Investors), we may underperform the market in the short run. However, as much as Mr. Market is swing in the short run, as long us investors keep true to finding value, we will eventually outperform the markets.

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I developed my passion for investment management especially equity research at a relatively young age. My investment journey began when I was 20, at a point in time where markets were still recovering from the Global Financial Crisis. My portfolio started from money I saved over the past years and through working during the holidays. I was fortunate to have a good friend with common investing mentality to began my journey towards value investing. To date, we still research and invest in companies together, discussing valuations and potential risks of a company. To date, I manage a fund with a value investing style. Positions are decided upon via a bottom-up approach or smart speculation (a term I came up with when buying a stock for quick profit due to a mismatch in prices in the market due to takeovers/selling of a subsidiary or associate). Apart from managing my own portfolio, I enjoy sharing my research with family and friends, seeking their opinions and views towards the stock. Reading Economics in London, I constantly keep up with the financial news in Singapore & Hong Kong. Despite my busy schedule, it has not stopped me from enjoying other aspects of life. I enjoy a variety of activities in whatever free time I may have – endurance running, marathons, traveling, fine dining, whiskey appreciation, fashion. Lastly, I enjoy meeting new people, discussing ideas and gaining new perspectives towards issues in the world.