There’s an interesting exercise that fund managers like to run. And it goes like this. Imagine that you’re a fund manager and you just raised S$100 million for a new fund. Because your fund is brand new, you own absolutely no stocks at all. This means that over the course of the next 3 to 6 months, you need to deploy most of your newly raised capital into the market. What stocks do you buy?

It’s an interesting exercise because it forces you to set aside all your preconceived notions about where stocks were 1 year ago, where they will be 1 year later, and to focus on one very simple