Wrote today about how ARKK and Baron offer a fascinating case study in why stock picking is only half the battle, the other half is rebalancing (or lack thereof). ARKK had spotted and owned the most prolific cos, and bitcoin, in 2016 (see below), but it employs a disciplined rebalancing method (kinda like an equal wgt index) vs letting the studs run while Baron let Tesla usurp the fund (was 50% at one pt). Given the Bessembinder study that all wealth creation in 100 yrs is from 4% of stocks, wonder if it makes sense to let winners run more- esp given this is what cap wgt indices that active is benchmarked against do. Baron ended up doubling ARKK's return in ten yrs, almost entirely bc of not taking profits on Tesla. That said, Baron's problem was those killer returns were delivered in a mutual fund and so no one noticed, in fact it saw outflows! (akin to making masterpiece album but it's only available on CD) So perhaps the right wrapper is the 3rd half of the battle. I get hindsight is 20/20 but its just a fascinating case study IMO.(Eric Balchunas)