Managers need to rediscover their mojo – and their alpha


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 didn’t 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