Good post on position sizing techniques of qualitative managers. Good quantitative managers spend a lot of time on this, but their strategy with robust historical data lends itself to it. By now I’m sure most people have heard of kelly betting? I think most qualitative PM’s utilize some form of fixed position sizing based on trial & error….I think there is room for improvement.
https://whatheheckaboom.wordpress.com/2010/10/30/position-sizing-in-value-investing/
Edit: 7/14/15
Another excellent post/pdf on position sizing h/t @rjs2006
http://www.grizzlyrockcapital.com/Diworseification_GrizzlyRock.pdf
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