Asset Capacity Study 2009 (Mar 10, 2009) David Kovacs, CFA Robert Turner, CFA Jeffrey Riggs Jennifer Boden A plunging stock market and a decline in market liquidity has resulted in a significant reduction -- about a 50% decrease -- in the asset-capacity limits for Turner Investment Partners’ 23 primary stock portfolios. As such, we think the new limits are unusually low and may require an upward revision if market conditions and liquidity improve later this year. The asset limits are calculated in two ways: individually and collectively. When an individual portfolio reaches its own particular limit, it will be closed to new investors. And when a particular group of portfolios reaches its collective asset limits, all portfolios in that group will be closed. With the exceptions of four portfolios already closed, most of our portfolios remain able to comfortably absorb additional assets for years to come without impairing their performance; most of our portfolios -- and groups of portfolios -- are well within their asset limits.
The views expressed represent the opinions of Turner Investment Partners and are not intended as a forecast, a guarantee of future results, investment recommendations, or an offer to buy or sell any securities. There can be no guarantee that Turner will select and hold any particular security for its client portfolios. Past performance is no guarantee of future results. Turner Investment Partners, founded in 1990 and based in Berwyn, Pennsylvania, is an investment firm that manages more than $15 billion in stocks in separate accounts and mutual funds for institutions and individuals, as of December 31, 2008.
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