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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 investment returns."

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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