The Wall Street Journal has a very interesting article with Nevada Public Employees’ Retirement System fund manager, Steve Edmundson. He oversees USD 35 billion and gave his investment strategy: do as little as possible, usually nothing.
Following this simple strategy, Nevada Public Employees’ Retirement System have better results than CalPERS(California Public Employees’ Retirement System, with USD 300 billion) in one, three, five and 10 years. Edmundson does that working by himself, with no Bloomberg terminal, against an army of analysts and no investment in fancy products or strategies.
His philosophy: keep costs down and not trying to beat the market.
So, what does Edmundson do during the day then?
E o que ele faz durante o dia? “I spend a lot of time researching things we ultimately don’t do.” The portfolio is rebalanced once a year.
This is a good example that a simple strategy with low costs can achieve great results!