Assets managers compensated based on AUM have little incentive to reduce or liquidate equity holdings and move into cash or fixed income that pays so little, clients would just remove those reallocated $'s out of the accounts to avoid the Fees.
Isn't that the point? They're paid to take risks and generate alpha not provide cash management after all. Baupost has seen client redemptions for exactly this reason
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sounds like you agree with me
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Yeah definitely I do agree, I think it's a healthy phenomenon for the most part
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