The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:A CIO Highlights a Loser's Game Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, April 01, 2013

A CIO Highlights a Loser's Game

News summary by MFWire's editors

Investment firms that focus on blame, for example holding people accountable for short-term volatility, don't understand statistics and shouldn't be given your money, according to Jason Hsu, chief investment officer of Research Affiliates.

In a column written for Barron's, Hsu delves into the nuances of selecting investment managers who consistently deliver alpha, and whether such a search is even possible.

He even posits that such an endeavor is really just a matter of playing the "Loser's Game."

Nonetheless, Hsu writes, there seem to be reliable indicators of underperformance, including "the culture of blame," which he deems is "one of the most toxic culture elements for investment management organizations."
Blame has many brothers, including fear, defensiveness, and self-righteousness. When the four horsemen are present, personal accountability, creativity, openness, and learning go into exile. From what I have heard and seen, when blame lives in an investment organization, professionals take joy in second-guessing investment decisions after poor short-term performance.

Read more of Hsu's comprehensive analysis in Barron's

Edited by: Tommy Fernandez

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use