It is more important than ever for managers to understand where their alpha-generating skill lies – and to be able to communicate, and show, that to their investors
By Nick Evans
Well, it certainly didnt take long for the reverse-indicator properties of this column to reassert themselves in 2012.
Barely was the ink dry on my comment in January highlighting the appeal to investors of systematic strategies in a difficult environment for discretionary managers and fundamental stock-pickers than equity markets were taking off like a rocket, taking those very same fundamental stock-pickers with them and leaving quant-based funds trailing in their wake.
Long-biased long/short funds have been particular beneficiaries none more so than value-based investors, most of whom were pulverised (again) in 2011 and