How long is your holding period?

One question I got asked frequently from IR director of companies I've invested : how long is your holding period (for your company)? Is long-only fund better investor than hedge fund due to longer holding period?

My answer is not necessarily. Many long-only funds trim and adjust their positions frequently, and some long-only funds have shorter holding period than most imagined. We understand some long-onlys claim to have 3 yr holding period put exception in China - some even do day trades in China. Meanwhile, some hedge fund hold long period when their mandate allow them to. There is no specific rule. For most funds that live in a relative world, monthly performance comparison creates stock turnover. CTA and Quants have the shortest holding period. Insurance company tend to have longest holding period. Everything else is something in between.

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That's it for this week.