He makes it clear that skill exists and that past performance is the best way to
identify skilled investors.
Not exact matches
Value
investors must still use their fundamental analysis
skills to
identify the companies best positioned to bounce back from subdued levels.
I have recently been working my way through Howard Schilit's book «Financial Shenanigans» which teaches intermediate
investors the
skills to
identify companies possibly engaging in accounting behavior that would make Enron executives blush.
Trapezoid's goal is to help
investors and allocators
identify portfolio managers who have predictable
skill and evaluate whether the fees are reasonable.
Investors seeking to
identify skilled active managers look to dissect fund performance into returns generated from factor exposures and alpha that is attributable to fund manager
skill, which in turn should affect fund flows.
Even if
investors can
identify skilled managers, they need to consider the timeliness of the strategies and monitor how quickly they gather assets.
Ultimately, the equity
investor will haul in a larger alpha catch by emulating the
skilled fisherman: first,
identifying a promising location (i.e., small cap stocks), then using multiple lines and hooks (i.e., implementing value, momentum, and quality strategies to exploit the chum of risk and mispricing in each), and lastly, dangling the lure of
skilled active management to tease out the smallest trading costs possible.
In Canadian Growth Stocks you'll learn how to profit from growth stocks that have solid financial indicators, how to spot them, and how to
identify growth stocks that are over hyped by the brokers and the financial new media These are critical
skills all
investors should obtain.
It is notoriously difficult for portfolio managers to demonstrate persistent
skill and for
investors to
identify truly skillful managers.
Active managers with true
skill (in excess of their fee structure) are hard to
identify, so
investors are better off with an index fund
Both professional advisers and individual
investors are greatly challenged to
identify investment fund managers who might have truly sustainable
skill.