FYI: Even with a disciplined selection
process, the odds against hiring
equity managers who will outperform
the market are prodigious.
It makes sense for investors to
monitor their actively managed
funds.
2. Many institutional investors place
“on watch” any managers who
underperform their benchmark on
a rolling three-year basis, updated
quarterly.
3. The historical record demonstrates
that even funds with
sterling long-term track records
would have spent many consecutive
quarters on a hypothetical
watch list.
4. Fiduciaries seeking to hire active
managers should not only refine
their selection skills but also
strengthen their commitment to
keeping them.
Regards,
Ted
http://www.researchaffiliates.com/Production content library/Hiring Good Managers is Hard pdf.pdf
