This approach generally has been vindicated in the past, as value investors tended to outperform a majority of money
managers over full market cycles; and this outperformance has been achieved principally during bear markets, by losing less than most.
Not exact matches
The only true test of a money
manager's ability is if he can obtain above - average results
over a
full cycle that includes both bull and bear
markets.
While most active
managers will state that their objective is to outperform
over a
full market cycle, they need to be more emphatic with asset owners up front about how much time that really entails and why they need it, especially if they state they have a long - term philosophy.
We think it's more useful to assess how a
manager has performed
over a
full market cycle; that is, in good time and bad.
Thus I expect that investment consultants will revert to the «style box» (or something new like it) once they realize that few
managers can consistently generate alpha
over a
full market cycle whether unconstrained of constrained.
Managers do need to achieve both an attractive absolute rate of return above inflation as well as comfortably exceed a low - cost passive index alternative
over a
full market cycle
Jason Subotky, Portfolio
Manager of the AMG Yacktman Fund and AMG Yacktman Focused Fund, discusses the investment strategy that has helped Yacktman perform
over full market cycles.
AMG
Managers Brandywine Advisors Mid Cap Growth (BWAFX), a mid-cap growth fund that's lost 3.7 % annually
over the
full market cycle.
As a defensively - minded, high yield fixed income team, the Buffalo High Yield Fund portfolio
managers follow a more cautious investment philosophy, with the goal of producing compelling risk - adjusted performance
over a
full market cycle.