Outperformance: Why dull isn't always boring

Lazard’s Aaron Barnfather explains why it is important to focus on how and why fund managers outperform rather than simply relying on the headline figures.

clock • 4 min read

Lazard's Aaron Barnfather explains why it is important to focus on how and why fund managers outperform, rather than simply relying on the headline figures.

A colleague recently asked me: "Which is more important: the amount of outperformance a fund manager delivers, or when and how the outperformance is achieved?" It caused me to think back to the first time I walked on to a fund management floor 20 years ago. One of the first things I was told, in no uncertain terms, was that it is extremely important to outperform a rising market. On reflection, I have spent the subsequent 20 years broadly ignoring that advice, treading instead a very different path to this widely accepted wisdom. The industry generally accepts that returns should b...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Infrastructure spend could help push growth despite bleak outlook

Infrastructure spend could help push growth despite bleak outlook

'One of the things that will drive the background music is inflation'

Hope Coumbe
clock 15 May 2024 • 1 min read
Future of Investment Festival: Three weeks left to secure a spot!

Future of Investment Festival: Three weeks left to secure a spot!

Targeted at sustainable, forward-thinking finance professionals

Professional Adviser
clock 15 May 2024 • 1 min read
Stable, long-term returns: Three reasons to invest in private credit

Stable, long-term returns: Three reasons to invest in private credit

'Private credit has emerged as an attractive opportunity for investors'

Albane Poulin
clock 14 May 2024 • 4 min read