By taking more risk. As a fund manager, you would also know that investors' money chases hot funds. Markets can be very cruel and have the capability of ignoring an otherwise sound investment for astonishingly long periods of time. If the market chose to ignore your investments for a relatively extended period, your fund's performance ranking would start to slip, and that would attract negative publicity. This causes money to start flowing out of your fund.
Fund managers react to the above pressures in different ways.
Others, who are under daily business pressure, succumb to the temptation of chasing short-term gains by taking more risk. If they were able to report outstanding results in the short term, their fund would attract more publicity and investors would soon pour in more money. That will make the boss happy and will preserve their job for the foreseen future. In that sense, those fund managers are all but gambling with your money. Now let us move to the next misleading statement , namely that if you're in for the long haul, you would not need to worry about short-term setbacks.