Beverly Chandler, Opalesque London: The latest edition of the AIMA Journal includes a comprehensive review of all the regulatory and policy news relating to the hedge fund industry worldwide.
The cover story is a piece by Simon Savage, Risk Specialist,
GLG Partners, and Paul Gibson, Chief
Tactical Writer, Man Group, entitled 'Cultivating skill in a world lacking in genius’. Here, the writers address the subject of the wealth of academic research that has been
conducted with the sole objective of refuting
the value of active management. "Many such
studies seek only to demonstrate what basic
mathematics already tells us. If participation
in capital markets is a zero-sum game in which
one can only profit at the expense of another,
it is obvious that active management per se
cannot beat the market" the authors write.
"However, this does not
preclude the possibility of the best managers
outperforming on a consistent basis.
Consequently, it is far more objective to question
why most fund managers fail to outperform the
market and to use this as a basis for determining
the infrastructure, support and culture that can
and does promote the generation of above average
Based on their analysis, the writers believe there are three main reasons
that account for underperformance in investment management.
Also in this issue of the AIMA Jo......................
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