PIMCO: Trend leaves consultants behind
Nov 8th, 2006 | Filed under: Hedge Fund Industry TrendsBy: Angele Spiteri, Global Pensions
Published: November 2, 2006
A hat-tip goes to hedge fund newsletter Opalesque for identifying this story about PIMCO’s skeptical view of pension consultants’ ability to work in a portable alpha paradigm.
Global Pensions reports:
“Consultants have been left behind in the move by large pension plans to portable alpha strategies, said Bruce Brittain, executive vice of president product management at PIMCO.”
“James Moore, senior vice president and product manager for long duration and pension, said that evolution developed quickly, but warned of the dangers of such a strategy being placed in the wrong hands.
“‘It’s a little like handing a scalpel to a young child. In the hands of a surgeon it can work miracles, but given to the wrong person it results in disaster,’ he explained.”
Coincidentally, Canadian portable alpha manager Northwater, has just launched a sort of pre-packaged fixed income portable alpha solution. Sources close to the firm say this bifurcated alpha/beta solution has recently won traditional active fixed income mandates.
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