Quasi trackers limit risk and returns

UK fund managers are often labelled as closet trackers due to the similarity of their performance results with the FTSE All-Share indices. This phenomenon has developed primarily as a result of risk controls but the lack of liquidity in the UK market and compliance requirements are other contributors to this ever-increasing trend. Homi Colah, partner of Apax Partners & Co and manager of the Artemis Momentum hedge fund, said investors expect absolute performance. He said if relative performance is the only criteria important to investors, they should invest in a tracker fund, as this would...