Conversely, just because a fund or private equity fund touts the concept of long-term investing doesn’t mean it actually is one. In fact, many excellent active equity funds may significantly lag behind market indices at certain times due to having a clear stock-picking style. If investors choose to exit during these periods, such investments cannot be considered long-term. The correct approach might be to add to positions during these times and reduce them appropriately when performance peaks are being chased by the masses.
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