--- title: "Meaning & Key Takeaway of: Throughout the universe of public and…" description: "\"Throughout the universe of public and private funds, managers are measured quarterly against one index or another, defined by statistics, and corralled..." image: "https://sms4smile.com/quotes/i/98c/michael-burry-13350_asset-allocation_throughout-the-universe-of-public-and-pr_779577.png" --- # Throughout the universe of public and private funds… ![“Throughout the universe of public and private funds, managers are measured quarterly against one index or another, defined by statistics, and corralled into this category or that category so that fund of funds, pensions, and other institutions can make comforting - if not necessarily prudent…” quote by Michael Burry](https://sms4smile.com/quotes/i/98c/michael-burry-13350_asset-allocation_throughout-the-universe-of-public-and-pr_779577.png) [Download](https://sms4smile.com/quotes/i/98c/michael-burry-13350_asset-allocation_throughout-the-universe-of-public-and-pr_779577.png) [Open image](https://sms4smile.com/quotes/i/98c/michael-burry-13350_asset-allocation_throughout-the-universe-of-public-and-pr_779577.png) > “Throughout the universe of public and private funds, managers are measured quarterly against one index or another, defined by statistics, and corralled into this category or that category so that fund of funds, pensions, and other institutions can make comforting - if not necessarily prudent - asset allocation decisions.” [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Fund managers are forced into rigid categories by statistical benchmarks, limiting nuanced decision‑making. **In simple terms:** Metrics force managers into boxes. Key Takeaway Question the metrics that dictate choices. Themes finance metrics decisionmaking Mood analytical critical Type financial strategic When to use this quote - portfolio construction - pension planning - fund of funds - regulatory compliance Key Concepts risk management behavioral finance investment strategy Questions to Reflect On - Are you following a metric or a strategy? - How can you incorporate qualitative judgment? A Different Perspective Over‑reliance on indices can miss unique opportunities. ★ ★ ★ ★ ★ No ratings yet [Asset allocation](https://sms4smile.com/quotes/about/asset-allocation/) [Customer](https://sms4smile.com/quotes/about/customer/) [Institutions](https://sms4smile.com/quotes/about/institutions/) [Management](https://sms4smile.com/quotes/about/management/) [Statistics](https://sms4smile.com/quotes/about/statistics/) [Universe](https://sms4smile.com/quotes/about/universe/) ## Related quotes > [What I find very interesting about the mutual funds managers is that here are people who are the new masters of the universe. 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There are six that I think are…](https://sms4smile.com/quotes/tony-robbins/from-an-asset-allocation-perspective-when-we-talk-about/) [Tony Robbins](https://sms4smile.com/quotes/author/tony-robbins/) > [You should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold.](https://sms4smile.com/quotes/ray-dalio/you-should-have-a-strategic-asset-allocation-mix-that-assumes-that/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [We believe that people moving their portfolios to an overweight in bonds will be disappointed over the long-term and will significantly underperform an asset…](https://sms4smile.com/quotes/james-o-shaughnessy/we-believe-that-people-moving-their-portfolios-to-an-overweight-in/) [James O'Shaughnessy](https://sms4smile.com/quotes/author/james-o-shaughnessy/) > [I don't often know where my ideas come from. Maybe it's the fact that I'm obsessively regimented in my analysis, borderline autistic. But whether…](https://sms4smile.com/quotes/jeffrey-gundlach/i-don-t-often-know-where-my-ideas-come-from-maybe-it-s-the-fact-that/) Jeffrey Gundlach > [Never underrate the importance of asset allocation.](https://sms4smile.com/quotes/john-c-bogle/never-underrate-the-importance-of-asset-allocation/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [We live in a very risky world and investors should not get "carried away" with excessive allocations to equities, or for that matter, real…](https://sms4smile.com/quotes/john-c-bogle/we-live-in-a-very-risky-world-and-investors-should-not-get-carried/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [On average, 90 percent of the variability of returns and 100 percent of the absolute level of return is explained by asset allocation.](https://sms4smile.com/quotes/roger-g-ibbotson/on-average-90-percent-of-the-variability-of-returns-and-100-percent/) Roger G. Ibbotson > [The most important key to successful investing can be summed up in just two words-asset allocation.](https://sms4smile.com/quotes/michael-leboeuf/the-most-important-key-to-successful-investing-can-be-summed-up-in/) [Michael LeBoeuf](https://sms4smile.com/quotes/author/michael-leboeuf/) > [An asset allocation plan is based on your personal circumstances, goals, time-horizon, and need and willingness to take risk.](https://sms4smile.com/quotes/michael-leboeuf/an-asset-allocation-plan-is-based-on-your-personal-circumstances/) [Michael LeBoeuf](https://sms4smile.com/quotes/author/michael-leboeuf/) > [The conventional asset-allocation method is like sheet music. It is prescribed, it has right answers and wrong answers and it sounds about the same…](https://sms4smile.com/quotes/john-kao/the-conventional-asset-allocation-method-is-like-sheet-music-it-is/) [John Kao](https://sms4smile.com/quotes/author/john-kao/) > [We can extrapolate from the study that for the long term individual investor who maintains a consistent asset allocation and leans toward index funds,…](https://sms4smile.com/quotes/roger-g-ibbotson/we-can-extrapolate-from-the-study-that-for-the-long-term-individual/) Roger G. Ibbotson > [The difference between success and failure is not which stock you buy or which piece of real estate you buy, it's asset allocation.](https://sms4smile.com/quotes/tony-robbins/the-difference-between-success-and-failure-is-not-which-stock-you-buy/) [Tony Robbins](https://sms4smile.com/quotes/author/tony-robbins/) ## More by Michael Burry > [I started trading stocks, options and futures while I was at UCLA, using my earnings from working summers at the old IBM plant on…](https://sms4smile.com/quotes/michael-burry/i-started-trading-stocks-options-and-futures-while-i-was-at-ucla/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [At one point, I recognized that Warren Buffett, though he had every advantage in learning from Ben Graham, did not copy Ben Graham but,…](https://sms4smile.com/quotes/michael-burry/at-one-point-i-recognized-that-warren-buffett-though-he-had-every/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [In June 2005, mortgage rates were at 40-year lows, and risk premiums on mortgage securities were at all-time lows. Once the banks migrated to…](https://sms4smile.com/quotes/michael-burry/in-june-2005-mortgage-rates-were-at-40-year-lows-and-risk-premiums-on/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [It is ludicrous to believe that asset bubbles can only be recognized in hindsight.](https://sms4smile.com/quotes/michael-burry/it-is-ludicrous-to-believe-that-asset-bubbles-can-only-be-recognized/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [Fresh, clean water cannot be taken for granted. And it is not - water is political, and litigious. Transporting water is impractical for both…](https://sms4smile.com/quotes/michael-burry/fresh-clean-water-cannot-be-taken-for-granted-and-it-is-not-water-is/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [Everything I do in investment is just very different.](https://sms4smile.com/quotes/michael-burry/everything-i-do-in-investment-is-just-very-different/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [One of the risks for anybody in the lending business is that being conservative can harm your competitiveness.](https://sms4smile.com/quotes/michael-burry/one-of-the-risks-for-anybody-in-the-lending-business-is-that-being/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [If you are going to be a great investor, you have to fit the style to who you are.](https://sms4smile.com/quotes/michael-burry/if-you-are-going-to-be-a-great-investor-you-have-to-fit-the-style-to/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [The late 90s almost forced me to identify myself as a value investor, because I thought what everybody else was doing was insane.](https://sms4smile.com/quotes/michael-burry/the-late-90s-almost-forced-me-to-identify-myself-as-a-value-investor/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [What you want to watch are the lenders, not the borrowers. The borrowers will always be willing to take a great deal for themselves.…](https://sms4smile.com/quotes/michael-burry/what-you-want-to-watch-are-the-lenders-not-the-borrowers-the/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [However, if one has been playing the buy-and-hold game with quality securities, one has been exposed to a substantial amount of market risk because…](https://sms4smile.com/quotes/michael-burry/however-if-one-has-been-playing-the-buy-and-hold-game-with-quality/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [My positioning with my investors was always, I need three to five years.](https://sms4smile.com/quotes/michael-burry/my-positioning-with-my-investors-was-always-i-need-three-to-five-years/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [I had begun to worry about the housing market back in 2003, when lenders first resurrected interest-only mortgages, loosening their credit standards to generate…](https://sms4smile.com/quotes/michael-burry/i-had-begun-to-worry-about-the-housing-market-back-in-2003-when/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [My natural state is an outsider. I've always felt outside the group, and I've always been analyzing the group.](https://sms4smile.com/quotes/michael-burry/my-natural-state-is-an-outsider-i-ve-always-felt-outside-the-group/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [I believe that agriculture land - productive agricultural land with water on site - will be valuable in the future.](https://sms4smile.com/quotes/michael-burry/i-believe-that-agriculture-land-productive-agricultural-land-with/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) [Explore all 50 Michael Burry quotes ](https://sms4smile.com/quotes/author/michael-burry/) ## More Asset allocation quotes > [I think that the first thing is you should have a strategic asset allocation mix that assumes that you don't know what the future…](https://sms4smile.com/quotes/ray-dalio/i-think-that-the-first-thing-is-you-should-have-a-strategic-asset/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [We can extrapolate from the study that for the long term individual investor who maintains a consistent asset allocation and leans toward index funds,…](https://sms4smile.com/quotes/roger-g-ibbotson/we-can-extrapolate-from-the-study-that-for-the-long-term-individual/) Roger G. Ibbotson > [The conventional asset-allocation method is like sheet music. It is prescribed, it has right answers and wrong answers and it sounds about the same…](https://sms4smile.com/quotes/john-kao/the-conventional-asset-allocation-method-is-like-sheet-music-it-is/) [John Kao](https://sms4smile.com/quotes/author/john-kao/) > [An asset allocation plan is based on your personal circumstances, goals, time-horizon, and need and willingness to take risk.](https://sms4smile.com/quotes/michael-leboeuf/an-asset-allocation-plan-is-based-on-your-personal-circumstances/) [Michael LeBoeuf](https://sms4smile.com/quotes/author/michael-leboeuf/) > [The most important key to successful investing can be summed up in just two words-asset allocation.](https://sms4smile.com/quotes/michael-leboeuf/the-most-important-key-to-successful-investing-can-be-summed-up-in/) [Michael LeBoeuf](https://sms4smile.com/quotes/author/michael-leboeuf/) > [On average, 90 percent of the variability of returns and 100 percent of the absolute level of return is explained by asset allocation.](https://sms4smile.com/quotes/roger-g-ibbotson/on-average-90-percent-of-the-variability-of-returns-and-100-percent/) Roger G. Ibbotson > [We live in a very risky world and investors should not get "carried away" with excessive allocations to equities, or for that matter, real…](https://sms4smile.com/quotes/john-c-bogle/we-live-in-a-very-risky-world-and-investors-should-not-get-carried/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Never underrate the importance of asset allocation.](https://sms4smile.com/quotes/john-c-bogle/never-underrate-the-importance-of-asset-allocation/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I don't often know where my ideas come from. Maybe it's the fact that I'm obsessively regimented in my analysis, borderline autistic. But whether…](https://sms4smile.com/quotes/jeffrey-gundlach/i-don-t-often-know-where-my-ideas-come-from-maybe-it-s-the-fact-that/) Jeffrey Gundlach > [We believe that people moving their portfolios to an overweight in bonds will be disappointed over the long-term and will significantly underperform an asset…](https://sms4smile.com/quotes/james-o-shaughnessy/we-believe-that-people-moving-their-portfolios-to-an-overweight-in/) [James O'Shaughnessy](https://sms4smile.com/quotes/author/james-o-shaughnessy/) > [You should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold.](https://sms4smile.com/quotes/ray-dalio/you-should-have-a-strategic-asset-allocation-mix-that-assumes-that/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [“From an asset-allocation perspective, when we talk about diversification, we're talking about investing in multiple asset classes. There are six that I think are…](https://sms4smile.com/quotes/tony-robbins/from-an-asset-allocation-perspective-when-we-talk-about/) [Tony Robbins](https://sms4smile.com/quotes/author/tony-robbins/) > [The most important thing you can have is a good strategic asset allocation mix. So, what the investor needs to do is have a…](https://sms4smile.com/quotes/ray-dalio/the-most-important-thing-you-can-have-is-a-good-strategic-asset/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [The difference between success and failure is not which stock you buy or which piece of real estate you buy, it's asset allocation.](https://sms4smile.com/quotes/tony-robbins/the-difference-between-success-and-failure-is-not-which-stock-you-buy/) [Tony Robbins](https://sms4smile.com/quotes/author/tony-robbins/) > [Over the long term, despite significant drops from time to time, stocks (especially an intelligently selected stock portfolio) will be one of your best…](https://sms4smile.com/quotes/joel-greenblatt/over-the-long-term-despite-significant-drops-from-time-to-time-stocks/) [Joel Greenblatt](https://sms4smile.com/quotes/author/joel-greenblatt/) [Browse all 16 Asset allocation quotes ](https://sms4smile.com/quotes/about/asset-allocation/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Throughout the universe of public and private funds, managers are measured quarterly against one index or another, defined by statistics, and corralled into this category or that category so that fund of funds, pensions, and other institutions can make comforting - if not necessarily prudent - asset allocation decisions.", "creator": { "@type": "Person", "name": "Michael Burry" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/michael-burry/throughout-the-universe-of-public-and-private-funds-managers-are/", "about": { "@type": "Thing", "name": "Asset allocation" }, "@id": "https://sms4smile.com/quotes/michael-burry/throughout-the-universe-of-public-and-private-funds-managers-are/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/98c/michael-burry-13350_asset-allocation_throughout-the-universe-of-public-and-pr_779577.png", "contentUrl": "https://sms4smile.com/quotes/i/98c/michael-burry-13350_asset-allocation_throughout-the-universe-of-public-and-pr_779577.png", "url": "https://sms4smile.com/quotes/i/98c/michael-burry-13350_asset-allocation_throughout-the-universe-of-public-and-pr_779577.png", "width": 1080, "height": 1080, "caption": "“Throughout the universe of public and private funds, managers are measured quarterly against one index or…” — Michael Burry", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Michael Burry", "item": "https://sms4smile.com/quotes/author/michael-burry/" }, { "@type": "ListItem", "position": 4, "name": "Throughout the universe of public and...", "item": "https://sms4smile.com/quotes/michael-burry/throughout-the-universe-of-public-and-private-funds-managers-are/" } ], "@id": "https://sms4smile.com/quotes/michael-burry/throughout-the-universe-of-public-and-private-funds-managers-are/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```