In this article in the new Australian edition of Forbes, Tribeca’s Jun Bei Liu explains the long-short investing strategy used in the Tribeca Alpha Plus Fund, the rewards of volunteering and what to watch for in the coming 12 months in the markets.
In three years you have grown the fund from $300m to more than $1 billion in value. When it comes to retail investing, what have you seen to be the most significant influence on people buying and selling shares?
Jun Bei Liu: We’ve noticed changes in retail investors. My clients include both large institutional investors like superannuation funds, and then there’s the mum and dad retail investors who directly invest with me to invest in the sharemarkets. I’ve been investing for over 20 years now across Australian shares and global shares as well. Over that time, I have really noticed a change in the behaviour of retail investors. These days, they react quickly to information. In olden days, it was generally accepted that the retail investor was always a little bit slower to react to information. They were the last to buy and the last to sell. In the past five years, especially since the pandemic, retail investors have really changed in terms of how quickly they get on top of information and what trends they want to invest with. They are really fast now at catching onto trends.
It’s been incredibly interesting to observe the changes in retail investor behaviour, but ultimately for the best return, they do their homework and get to know the company. They follow them, and know what the company does, and for best they experience the company’s products or services. These are some of the basic principles that always work throughout time for investing.