To The Moon

[Wow]Offline meeting venue rendering on August 19th

Dear Tigers,

Were you at Raffles Palace this past Wednesday evening for the Portfolio Management seminar led by Tiger Brokers Singapore's Chief Market Strategist @Tiger_James Ooi ?

Whether you made it or not, it's worth reflecting on a key question: how do retail investors and professional fund managers differ in their investment styles, analytical angles, and research rigor? More importantly, what steps can you take to become a more systematic, strategy-driven investor?

We've distilled the evening's insights into a concise recap below. Regardless of whether you were in the room, reviewing your own portfolio framework is always time well spent. Read on, and be sure to join our interactive recap giveaway!

Offline meeting venue rendering

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Below are the key message on August 19th:

@Tiger_James Ooi started by sharing how portfolio management can look quite different for retail investors and professional fund managers. While retail investors may not have the same access to information and research tools as institutional managers, they also possess distinct advantages of their own.

Unlike fund managers, retail investors are not bound by short-term performance targets or reporting cycles, giving them greater freedom to stay focused on long-term objectives. They also enjoy greater flexibility in selecting individual investments and sizing each position, without being constrained by a formal investment mandate. Additionally, retail investors’ smaller trading scale means liquidity and market impact are generally less of a concern. James highlighted how these structural advantages can give retail investors greater latitude to build portfolios around their own objectives, time horizons and risk preferences.

That flexibility, however, comes with its own challenges. Because retail investors are committing their own capital, periods of market volatility can feel particularly personal and create greater emotional pressure. Learning to navigate these emotional currents, and staying disciplined when markets become turbulent, is therefore just as important as building the portfolio itself.

James highlighted several practical questions investors may want to revisit when constructing and reviewing a portfolio. He first zoomed in on cash holdings, noting that while cash provides flexibility and a buffer during volatile periods, holding too much can dilute returns and make it harder for the portfolio to keep pace with the broader equity market performance.

He also touched on portfolio turnover, which is the extent to which holdings are bought and sold relative to portfolio size. Turnover can vary widely by strategy, with portfolios that make greater use of options or other leveraged instruments potentially recording turnover rates above 100%. Overall, some degree of turnover is often essential to keep the portfolio responsive to changing market conditions and aligned with its strategy.

Additionally, James discussed how even long-standing investment philosophies may need to evolve as market conditions change. Using Terry Smith as an example, he noted that the traditional focus on buying high-quality companies at reasonable valuations and holding them for the long term is increasingly being complemented by a greater awareness of momentum.

The backdrop matters. With passive and index-driven flows, AI-related enthusiasm and increasingly momentum-driven markets shaping price action, a fundamentally attractive company can still remain out of favour for longer than expected, which has reduced the appeal of simply “buying the dip” whenever the share price of a quality company falls.

I. Retail Investors vs. Fund Managers: Structural Differences and Relative Advantages

James Ooi opened by highlighting that portfolio management looks quite different for retail investors compared to professional fund managers. While retail investors may lack the same access to information and research tools as institutional managers, they possess distinct structural advantages of their own:

Key Takeaway: These structural advantages give retail investors greater latitude to construct truly bespoke portfolios aligned with their personal goals, investment horizons, and risk appetites.

The flip side of flexibility is emotional challenge: Because retail investors are committing their own capital, market volatility can feel intensely personal and create greater emotional pressure. Therefore, learning to navigate these emotional currents and maintaining discipline during turbulent markets is just as critical as building the portfolio itself.

II. Key Questions for Portfolio Construction and Review

James emphasized that investors should regularly revisit the following core questions when constructing or reviewing a portfolio:

1. What is your average holding period for a single investment?

2. What is the longest you have held onto a losing / winning trade?

3. What is the average cash weight in your portfolio?

4. What is the standard deviation (volatility) of your portfolio?

5. If your portfolio declines by 30%, what is your recovery action plan?

6. What is your average equity / ETF exposure?

7. What is your expected annualized return target for the next 3 years?

8. What is your portfolio turnover rate (Total Sales & Purchases / Average Portfolio Value)?

On Cash Holdings

James specifically addressed the dual-edged nature of cash positions:

• Upside: Cash provides flexibility and a buffer during volatile periods, serving as both "dry powder" and a psychological safety net.

• Downside: Holding too much cash dilutes overall returns and makes it harder for the portfolio to keep pace with the broader equity market over time.

• Practical Guidance: Cash allocation should be dynamically balanced against personal risk tolerance, opportunity cost, and investment horizon—not held as a static default.

On Portfolio Turnover

• Turnover reflects how actively holdings are bought and sold relative to portfolio size.

• Wide variation by strategy: Accounts using options or leveraged instruments may record turnover rates above 100%.

• General Principle: Some degree of turnover is essential to keep the portfolio responsive to changing market conditions and aligned with its strategy; however, excessive turnover can erode returns through transaction costs.

III. Markets Evolve, So Must Strategy: The Terry Smith "Style Drift" Case Study

James used renowned UK fund manager Terry Smith (Fundsmith) as an example to illustrate how even the most steadfast long-term philosophies may need to evolve as market conditions change.

The Old Strategy: "Buy good companies. Don't overpay. Do nothing."

Traditionally, Smith's core approach was:

• Buy high-quality companies

• Wait for reasonable valuations

• Treat temporary setbacks at quality companies as buying opportunities ("buy the dip")

• Hold for the long term with minimal trading ("Do Nothing")

Changing Backdrop: Why the Old Strategy Faces Headwinds

1. Passive / index fund flows increasingly dominate market pricing

2. AI-related enthusiasm concentrates sentiment and capital in specific sectors

3. Markets are increasingly driven by momentum rather than fundamentals

4. Open-ended fund redemption pressure: Prolonged underperformance can trigger redemptions; even if the long-term thesis eventually proves correct, the manager may not survive to see it

The New Strategy: Adding the "Third Leg"

Fundsmith raised its portfolio turnover to approximately 51.8% in H1 2026 and explicitly signaled more active management going forward. The core evolution:

Specific Adjustments:

• Less "Catching Falling Knives": Previously, a temporary problem at a quality company was treated as a buying opportunity. Smith now states that Fundsmith will be far less willing to buy simply because a quality company's share price has fallen after a setback, because negative momentum can persist much longer in today's market.

• Incorporating Momentum: The strategy now gives greater weight to both fundamental momentum (earnings, cash flow trends) and share price momentum (price trends themselves).

• Portfolio Changes:

  • Additions: AppLovin, GE Vernova, Netflix, TSMC, Uber

  • Reductions / Exits: LVMH, Nike, Novo Nordisk, Unilever

  • Reasons for Sales: Weak fundamental momentum, management issues, and valuation concerns

Important Clarification

This does not mean Fundsmith is becoming a pure momentum fund. Smith emphasized:

The portfolio still seeks high-quality companies at reasonable valuations; the change is that price and fundamental momentum now carry greater influence over entry, exit, and holding decisions.

IV. Implications for Retail Investors

1. Recognize and Leverage Your Structural Advantages: No redemption pressure, no mandate constraints, no liquidity concerns—these are privileges many fund managers would envy.

2. Institutionalize a Disciplined Review Process: Regularly revisit the key questions above to prevent your portfolio from drifting away from its intended strategy.

3. Cash Is a Tool, Not a Strategy: Maintain adequate cash to navigate volatility, but do not let cash become an "idle asset" that drags on long-term returns.

4. Strategies Must Evolve with Markets: The market environment (passive flows, AI, momentum dominance) has shifted. The simplistic "buy and hold forever" logic may underperform in certain contexts. Retail investors likewise need to incorporate respect for momentum and trend into their frameworks, rather than mechanically "buying the dip."

5. Emotional Management Is the Ultimate Moat: When the market drops 30%, the clarity and executability of your action plan often matters more than your stock-picking skill in determining long-term outcomes.

One-Sentence Summary: Building a resilient portfolio is not merely about picking good stocks—it is about how you allocate across assets, how you balance risk and stability, and how you align your portfolio with your true risk profile and timeline—and having the discipline to review and evolve when markets change.

For more offline events please turn to below links to register >>

August 21st>> https://tigr.link/9ASvlq

August 27th>> https://tigr.link/9ASvqy