There is a rule of thumb on Wall Street that when a fund knocks it out of the park in any given year or has an exceptional winning streak for a couple of years it is bound to fall to earth sooner rather than later and lag the market, its peers, or both for several years. It's called reversion to the mean.
With few exceptions, this week’s guest has been in the winning streak category for a while. He is Michael Lippert, Head of Technology Research at Baron Capital and portfolio manager of the firm’s high-growth stock oriented Baron Opportunity Fund
Morningstar’s one caveat about the fund’s performance has been its volatility, as it focuses entirely on companies with high rates of growth, not on the mitigating effects of returning capital to shareholders with stock buybacks or dividends. Volatility is a topic Lippert tackled in-depth in a recent quarterly letter to fund shareholders. I ask him to share his views with us.
WEALTHTRACK #1745 broadcast on May 07,2021
More Info: https://wealthtrack.com/?p=22536
“The Volatility of Stock Investor Returns” Ilia D. Dichev, Emory University, Xin Zheng, University of British Columbia, 1/22/2021
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3663350

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