would have been one of those diversified names but elliott management pressured them to become undiversifiedwonder the stock declined 70% from 2014 peak to its trough this past january. even worse, the share repurchases became a very public black eye for hess. not only were they selling off important divisions at the worst possible time, but the company was buying back its stock aggressively at much higher prices than they could have gotten if they just waited from august of 2013 to the end of 2014 hess spent $5.26 billion, $5.26 billion to repurchase more than 62 million shares. average price, 84. even after the recent rebound, hess is at 62. while the company initially used the asset sales to pay down its debt load, by 2014 they were borrowing money to do that buyback and increased dividend. fast forward to this past february, what did hess have to do? a humbled hess needed to do a 25 million share secondary, offering at 39. part of a major fund-raising effort. okay, let's put it together. they bought 63 million shares in the middle '80s and then a couple years later they had to sell 25 mi

maybe you years ago, were undiversified and at 120. then there was a fidelity 50 fund.ck holdings in your portfolio? what has it meant a today? >> it's a great luxury to have clients that let us do that. we have been able to double the market return since we started 17 years ago. that is notave done just what we own, but what we don't. tom: exactly. learn, here -- we all it's precisely that, what you don't own. >> and you also have to look at the asset classes. i think that's important as well. tom: where are you on large cap, small cap? are only going to own 18 you can't afford the volatility of a small-cap portfolio. they are very, multinational, with the all trade in the united states. guy: how was your reaction to the massive increase in passive money? well, that is part of the reason we stick with a small number of stocking states undiversified. is that theor that closer you get to homogenous market like funds, in order to justify are considerably higher than passive management, we need to outperform the market by a lot. you can't do that if you oh 200 or 300 stock

it always carries risk beyond being undiversified.tick with cramer if you want to know more about how to manage your retirement money so you can build lasting wealth for you and your family. there's much more "mad money" ahead. americans are living longer these days and, yes, that should change the way you prepare for retirement. i'll help you fill those golden years with green. >>> sometimes your 401(k) company math just doesn't cut it. don't miss my take on when it makes sense to go above and beyond your normal contribution. plus i.r.a., 401(k), both i'm weighing in, stick with cramer. >>> you don't buy your kid nephew the same gift as your mother-in-law and that logic applies to the stock market, too, the rules of ownership can differ depending on age and your risk tolerance. while it's easier to bless some high risk speck speculative stocks in your youth, older investors shouldn't expose themselves to the same level of uncertainty. there's always a bull market somewhere and i promise to find it joust for you on "mad money" weeknig