Death By Affirmative Action

death by affirmative action
The hospital that replaced the original "Killer King".

When Affirmative Action Kills

A recurring theme we've covered here is the consequences of placing unqualified individuals in fields such as medicine or aviation, where mistakes can cost lives (see, for example, The Next Affirmative Action Disaster). 

In the remarkable thread below, Richard Hanania detailed the affirmative action disaster that was Martin Luther King/Drew Medical Center in Los Angeles, a hospital so bad locals called it "Killer King". 

In Case You Missed It

In our Exits post on Friday, we highlighted the best-performing hedged portfolio from our January 12th cohort on the Portfolio Armor website. This one more than doubled the performance of SPY over the next six months, with the biggest gains coming from a position in Super Micro Computer (SMCI). 

death by affirmative action

death by affirmative action

This is another example of the benefit of concentration. If SMCI had been one of dozens of stocks in a portfolio, it wouldn't have had as big an impact. You can find an interactive version of that chart here.

 

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Authored by Portfolio Armor via ZeroHedge July 16th 2023