Coronation* sent an i nteresting email to clients as African Bank was going into free fall. “In this regard, we want to confirm to you that the exposure to African Bank is not material in any of our client funds,” the company stated. It went on to say that the largest exposure was in the Coronation Top 20 Fund in which it had an exposure of 0.62% as of the close on 6 August. Fair enough, but then if the holding is “not material”, why do they bother holding the stock? If it matters not when it collapses, surely it equally matters not if it rose spectacularly? Far too many funds hold too many stocks with the long tail being totally meaningless in terms of performance, and then why bother? If I want a longtail investment I can buy an index tracking exchange-traded fund. One surely invests with an asset manager exactly because they select a few select stocks that will have a high conviction to outperform.