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LMG presentation during the Fund Manager Selection conference in Zurich, Crowne Plaza hotel, Sep 25-26 2013
This presentation is a draft version. Changes compared to the final draft presented at the event are not exluded.
LMG believes that a lot of investors and their advisors suffer from a few biases:
1) They overestimate the importance of bottom-up manager selection vis-a-vis top-down asset allocation;
2) They tend to stick too often to the 'usual suspects' who basically represent well-known brand names instead of those with the most promising strategies as far as the potential for excess return is concerned.
3) Within EM and FM space some countries suffering from so-called 'foreign bias' have a far more difficult task to attract investors into local asset management boutiques than others. Often this is not correct.
4) Of course there are regulatory and corporate governance related factors that might work against the EM and FM managers. However, most of them are more than willing to set up structures in line with what investors want, even if this implies going international to let's say Luxembourg, London, New York etc.
Bottom-line: do not avoid a careful analysis of interesting local managers.
LMG is using quite a few of these managers already in its investment solutions.