At the same time, you’ll work with the analysts to increase return. That means that you’ll concentrate on the creditworthiness of the issuers of both commercial paper and CDs,which offer higher yields. You’re probably going to try to buy as many of these issues as possible—assuming that the analysts can verify that the investments are high quality. Your fund has the flexibility to invest in a wide range of securities, and your competitors are doing just that, looking for higher returns. To keep risk in check, you’ll diversify broadly, with position sizes of 1 percent or less of the assets under management. In fact, many portfolio managers will seek.
