Over the past couple of months, I have been re-evaluating many common tenets of the manager selection process. My goal has been to separate what is done out of convention, habit and convenience from what is actually meaningful when identifying great managers.
The food we eat defines us; the way we eat it is equally telling. For many in the U.S., unlike most of our colleagues in Europe, eating lunch at one’s desk is standard practice on at least a day or two during the week.
For many, “the market” is the S&P 500. Nearly a trillion dollars are invested “passively” so as to emulate its performance and exposures while 3.5 trillion are benchmarked to it.