2012 Archive

Three Questions Clients Must Ask Their Managers

A key takeaway from our October issue of The View from Burgundy, “Surviving Success: Investment Management and Value Added,” is that all investors should hold a yearly meeting with their investment managers to assess the manager’s business. Specifically, they should ask three questions: Is your manager too big? Is your manager a closet indexer? Is… Continue reading “Three Questions Clients Must Ask Their Managers”

Surviving Success: Investment Management and Value Added

In the investment management business, the greatest enemy of success is success itself. From birth through decline, the typical path of a money manager is quite predictable if three fundamental opponents to value added are not recognized and carefully addressed. These important factors are firm size, closet indexing and a focus on downside protection. Derived… Continue reading “Surviving Success: Investment Management and Value Added”

The Value of Experience in an Information Age

A recent Financial Times article (“End to ‘Alpha’ spells trouble for fund managers”)1 presents the opinion that, with the rise in information accessibility, it has become more difficult – or even impossible – for active managers to consistently beat the market. “The skills needed to select securities that worked as stocks and bonds rose in… Continue reading “The Value of Experience in an Information Age”