From the latest Value Investing with Legends podcast with Matthew Fine:

"Yeah, I don't want to oversimplify, but I do want to make an overriding point that we went and looked years ago here at Third Avenue a couple of years ago, and what the average turnover is for an actively managed public equity fund in the United States, and it's about 70 percent was the number that we calculated.

And that means that your average turnover, once about every six quarters, you turn over the entire portfolio [...] which means, for the listeners, that's an incredibly short-term time horizon.

And if your investment horizon is four quarters or six quarters, you're going to be focused on, you're probably rational, in my view, to be focused on a very specific set of fundamentals, meaning what is the earnings per share going to be? What is the growth of earnings per share going to be? Is it going to beat expectations over the near term?

And those are the types of return drivers that you're probably fixated on. And again, don't contrast that to the type of investing that we're gaining, where things had gone really badly. I mean, macroeconomic level, industry level, something specific to the company has gone really badly, and the company needs to be fixed, the industry needs to recover from the cyclical depression, or there are levers that management needs to pull in order to fix the company.

Those are not things that generally happen over the next four to six quarters. And the resource conversion transactions that are a huge part of the value creation that we strive to benefit from are certainly not things that happen over the short term.

So the level set, on average, we're looking at completely different things and completely different sources of return drivers for the businesses over different time horizons than the average investor."