Half fund manager decisions 'wrong'

The study - which looked at 215 traditional long-only portfolios - found that even good managers only add value with around 51pc of their decisions and great managers only have a "hit rate" of around 53pc. However it said the typical manager compensated for a mediocre hit rate by generating good gains from the winners which offset the losses from the poor decisions. It said this was represented by the "win-loss ratio" - where the industry average is 100pc and a good ratio is 110pc, meaning the alpha from good decisions is 10pc more than that lost from poorer ones. Inalytics chief exec...