Managers Make the Difference

Many studies discuss the contribution of asset allocation decisions to investment returns, but there are only a few that assess the performance of active investment managers. As it happens, our firm's clients were the subject of a conclusive academic study that found that over 12 years with our help, they had clearly engaged superior managers.

Professors Frank Fabozzi, of Yale University, and Bruce Collins, of Western Connecticut State University, performed an exhaustive analysis, concluding "the selected management group exhibits superior returns on the basis of actual returns and risk-adjusted returns." This conclusion held for the entire 12 years, through various economic conditions: growth, stagnation and recession; and up, down and flat markets. The study's findings have been supported by informal studies before and since.

We'd be pleased to send you a copy of "Equity Manager Selection and Performance," Review of Quantitative Finance and Accounting, Volume 15, pages 81-97, by Professors Frank Fabozzi, Yale University, and Bruce Collins, Western Connecticut State University, upon request.