KEYNOTE SPEECH: Stan Miranda, Partners Capital The failure of active investing in 2011
Thu Mar 22, 2012
In a surprisingly witty yet astute presentation, Stan Miranda, CEO and CIO of Partners Capital, emphasised that active asset management as an industry is ‘on watch’ with sophisticated clients and that securities selection, rather than market timing, is the only way to glean consistent alpha
Stan Miranda touched upon a sensitive topic at the very outset
of his keynote address: in a low-interest-rate environment, how
can end investors justify paying 2 & 20 fees? This calls
for an evaluation of what truly contributes to alpha in today's
environment. The question is especially pertinent, given the
fact that hedged equity manager alpha has been on a declining
Miranda highlighted three primary sources of alpha from
active asset managers: security selection, asset allocation (by
geography, sector or theme) and exposure management (either via
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