Skill or luck? The role of strategies and scenario analysis as a competitive differentiator for fund management firms

Jem Tugwell ()
Additional contact information
Jem Tugwell: Jem Tugwell Associates Limited

Journal of Asset Management, 2011, vol. 12, issue 4, No 5, 291 pages

Abstract: Abstract This article argues that plausible and provable market differentiation for a fund management firm can only be delivered via a strategy and scenario-centric investment approach. By facilitating correct and repeatable decisions across multiple funds, firms can demonstrate a transparent and efficient investment process, implemented via skill centres that add positive returns. The emphasis is on differentiating good luck from skill, proving that the underlying decisions contribute to the ultimate performance. The article challenges the conventional view of traditional performance attribution approaches, and illustrates the options for implementing a fundamentally more logical, measurable process.

Keywords: performance persistence; manager selection; manager evaluation; skill; attribution; diversification; breadth; active management versus passive management; derivatives or futures overlay; strategy; scenario (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/jam.2011.10 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:assmgt:v:12:y:2011:i:4:d:10.1057_jam.2011.10

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41260

DOI: 10.1057/jam.2011.10

Access Statistics for this article

Journal of Asset Management is currently edited by Marielle de Jong and Dan diBartolomeo

More articles in Journal of Asset Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().