•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Komfie Manalo, Opalesque Asia:

Katherine Grant, a hedge fund and equity specialist from LGT Capital Partners, said she believes that fundamental asset managers have a little bit of identity crisis because the current markets simply force them to rethink and redesign their investment approach. The challenge of such managers would be that they wanted to maintain a long term trajectory (in their style and their investments), but they also try to address the "violent rotations which often results in whipsawing or de-risking at the bottom."

She said at the latest Opalesque 2016 New York Roundtable, "When you hear a manager say, 'I’m a stock picker. I don’t really care about anything else, I just pick ten really good stocks’, that sounds great, but that model has been really challenged over the past few years. There are more systematic and passive participants in the market which has caused pretty violent rotations."

A changing view on volatility and long-term perspective

Grant also thinks that managers can’t be all thing to all people. But moving forward, she said that long/short managers may have to embrace the long term; and with that have a different conversation with allocators on structuring their product, fees and provisions.

"With such a profile, I believe allocators need to be more tolerant......................

To view our full article Click here