Fundamentalism in Asset Management

Jan 17th, 2007 | Filed under: Academic Research, CAPM / Alpha Theory | By:
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Despite their “high-flyer” status, reported today that several high profile UK asset managers have recently begun bailing out of long-only shops.  Reasons ranged from retirement to “spending more time with family”.  But as this article points out, many have been wooed by hedge fund companies.  Says

“Immediately after retiring from CSAM, (Bill) Mott (a star Credit Suisse fixed income manager) announced that he could not resist the lure of running money on a day-to-day basis in an environment unencumbered by bureaucracy. He is joining former colleagues to set up Psolve, an investment boutique, which he describes as a ‘dynamic and free-thinking environment where the fund management team’s interests can be aligned with those of both the group and our investors’.

“The lure of boutiques of specialist and hedge fund managers, which promise managers more freedom and higher pay linked to performance, is a sensitive issue for big investment groups.”


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