My latest IFA educational article can be found here. Recently I met with a fund manager who was showing me how his direct property fund had lower volatility than the listed property index. Given the infrequency of direct property valuation, volatility measures, like standard deviation, should probably be ignored. My latest article published in IFA …
Daily Archive: August 3, 2009
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Aug 03
Alpha does not equal Outperformance
An article I wrote earlier in the year for IFA magazine can now be found here. Basically the article shows how it is possible to outperform and index but display no skill (or alpha); and vice versa…i.e. underperform an index and show skill (or alpha). Send article as PDF
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Aug 03
Another blow for active managers
Following the APRA report from a few weeks ago, late last week Standard and Poors published a paper that wasn’t too flattering of the active side of the Australian funds management industry. The paper can be found here. Their analysis had the following conclusions: Over 5 years, the benchmarks outperformed the majority of active managers …
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