VIEWPOINT


“Understanding managers is like bird watching. If


you watch them day in day out for six years then you understand how they will


behave. You know what you can expect from them.”


Tackling the question of multi manager selection


Quaesta Capital’s Pablo Frei explains the art of manager selection to Currency Investor’s Richard Willsher.


A


chieving sustainable returns in active FX LQYHVWPHQW PDQDJHPHQW LV GLIÀFXOW WR GR &KRRVLQJ D IXQG RI IXQGV RU DQ LQGH[HG


DSSURDFK EDVHG RQ D FRQVLVWHQW VWUDWHJ\ FDQ SURYLGH WKH DQVZHU EXW VHOHFWLQJ WKH FRQVWUXFWLRQ RI WKHVH SUHVHQWV D VLJQLÀFDQW FKDOOHQJH


$GGUHVVLQJ WKH VFDOH RI WKH SUREOHP 3DEOR )UHL RI 4XDHVWD &DSLWDO H[SODLQV ´2XW RI WKH PDQDJHUV WKDW ZH WUDFN RQO\ WZHQW\ RU WKLUW\ KDYH GHPRQVWUDWHG WKDW WKH\ FDQ HDUQ VXVWDLQDEOH UHWXUQV µ


+H DGGV WKDW PDQDJHUV PD\ KDYH VWURQJ EXVLQHVV PRGHOV DQG ZHOO ZURXJKW VWUDWHJLHV WKHLU WHDPV PD\ EH PDGH XS RI EULJKW KLJKO\ HGXFDWHG SHRSOH RU WUDGHUV DQG DQDO\VWV ZLWK ORQJ H[SHULHQFH EXW QRQH RI WKHVH TXDOLWLHV JXDUDQWHHV WKDW WKH\ ZLOO HDUQ PRQH\ IURP ); 7KH\ PD\ IRU H[DPSOH KDYH JUHDW VWUDWHJLHV EXW ZHDNQHVVHV LQ WKHLU DSSURDFK WR ULVN PDQDJHPHQW 0RUHRYHU WLPLQJ LV NH\ ´6FDOLQJ EDFN JHWWLQJ LQWR RU RXW RI WKH PDUNHW ² WKLV LV ZKDW RIWHQ PDNHV PDQDJHUV VXFFHVVIXO µ VD\V )UHL


82 Currency Investor | Autumn 2011


Grouping managers 7KH SURFHVV RI JURXSLQJ PDQDJHUV WR HQVXUH depeQGDEOH UHVXOWV IURP D IXQG RI IXQGV RU LQGH[ LQHYLWDEO\ VWDUWV ZLWK DQ XQGHUVWDQGLQJ RI FOLHQWV· JRDOV


%XW DQ HDUO\ FRQVLGHUDWLRQ LV KRZ WR GR VR FRQVLGHULQJ WKH DUUD\ RI GLIIHULQJ VWUDWHJLHV RQ RIIHU WR WKRVH FOLHQWV V\VWHPDWLF VKRUW WHUP ORQJ WHUP GLVFUHWLRQDU\ IXQGDPHQWDO FDUU\ WHFKQLFDOO\ RULHQWDWHG DQG VR IRUWK ([SHULHQFH KDV OHG 4XDHVWD WR DVVHPEOH PDQDJHUV LQWR WKUHH JURXSV


1 Beta oriented ² WKH\ HDUQ JRRG PRQH\ LQ ORZ ULVN PDUNHWV 4XDHVWD UHIHUV WR WKHVH DV ´JOREDO JURZWK PDQDJHUV µ 7KLV LV D ´VKRUW JDPPDµ DSSURDFK 7KH\ KDYH D SRVLWLYH FRUUHODWLRQ WR WUDGLWLRQDO LQYHVWPHQWV DQG JOREDOO\ GLYHUVLÀHG SRUWIROLRV


9,(:32,17


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92