H & Associates manages a $30 million equity portfolio for the multimanager W pension funds. Among the six equity managers, the performance of H & Associates is better in the past five years but in one less favorable year, the shortfall was trivial. Committee members suggested, H& Associates to limit the portfolio to no more than 20 stocks. Characters in the case: H & Associates, Vice president J, Committee members. Adequate information: Size of the portfolio is $30 million, Better performance of portfolio of H & Associates compared to six equity managers, Stocks in the portfolio are 40-50, investment of 2%-3% in each stock. To determine: The effect of change in portfolio on the total fund.

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Chapter 7, Problem 3CP

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Case summary: H & Associates manages a $30 million equity portfolio for the multimanager W pension funds. Among the six equity managers, the performance of H & Associates is better in the past five years but in one less favorable year, the shortfall was trivial. Committee members suggested, H& Associates to limit the portfolio to no more than 20 stocks.

Characters in the case: H & Associates, Vice president J, Committee members.

Adequate information: Size of the portfolio is $30 million, Better performance of portfolio of H & Associates compared to six equity managers, Stocks in the portfolio are 40-50, investment of 2%-3% in each stock.

To determine: The effect of change in portfolio on the total fund.

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