(From Financial Mail)
Byline: Stephen Cranston
Risk management PRESERVING CLIENT WEALTH Watching the maximum drawdown figure Like Allan Gray Limited in Cape Town, the Orbis funds consider losing money to be the most significant risk.
It would not hold much attraction to investors if the Orbis funds did not substantially outperform the relevant benchmarks and the competing funds over time.
But the funds do not pay much attention to so-called "business risk" - the risk of looking too different from its competitors. It does not consider that a low tracking error to the benchmark makes a fund "low risk".
The Orbis Global Equity Fund …