UBS on active management: myth busters?
By Rolf on 1 November 2017
It has again been a very long time since my last post. Sorry again. But I have now decided that it might be fun to get involved in the ongoing discussion over the merits of active management, particularly since so much of it is self-serving nonsense — incidentally on both sides. UBS has now weighed […]
Posted in Active/passive management, Essays | Tagged Alpha, Market efficiency, Small caps | 4 Responses
Alpha in single asset class portfolios
By Rolf on 10 June 2012
Active managers try to outperform their benchmark through various active bets. They obviously need to be skilled in order to be successful. But skill is not the only possible driver of active bets. Some will be the result of biases. As investors, we need to be able to untangle the impact of skill – alpha […]
Posted in Active/passive management | Tagged Alpha, Market efficiency, Performance, Style bias
Lies, damn lies and FTfm statistics
By Rolf on 15 April 2012
This week’s FTfm (the FT’s financial market supplement) ran an article headlined Hedge fund gains are other funds’ losses (access reserved to subscribers). It finds that hedge fund managers outperformed over the past thirteen years and that this outperformance was “financed” by a corresponding underperformance of traditional asset managers. This would be very good news […]
Posted in Comments/ramblings | Tagged Hedge funds, Market efficiency, Performance, Statistics | 1 Response
Is active management easier in less efficient markets?
By Rolf on 5 February 2012
At a recent client meeting, a consultant stated that they favored active strategies in emerging markets even though, in developed markets, they usually recommended a passive approach. They argued that emerging markets were much less efficient than, say, the US market and that it would therefore be “easier” to add value through active management and […]
Posted in Active/passive management | Tagged Emerging markets, Market efficiency
Why buy Carlyle?
By Rolf on 1 May 2012
The Carlyle Group is about to go public. The founders of the second-largest private equity group wish to create a vehicle that will allow them to cash out gradually. It is perfectly understandable that they would want to sell some of their holdings. What is much less obvious is why anybody would want to buy. […]
Posted in Comments/ramblings | Tagged IPO, Market efficiency, Private equity