The Fund Manager's Dilemma?

Sunday, January 11, 2004 | 02:56 PM

I've referenced Jeremy Grantham in the past. In Q3 '03, Grantham stated that we are now experiencing "The Greatest Sucker Rally in History."

Is that overstating the matter? It depends upon your timeline. If you measure your returns in terms of years or decades, then Grantham may very well be right.

Yet while his Macro call is probably correct, the market keeps going higher without him.

What makes the situation so challenging -- even perplexing -- is that most fund managers are measured on a quarterly basis. If you believe as Grantham does, and make a "Macro call" based upon that belief, then you missed the biggest rally since 1999.

This is the Fund Manager's Dilemma: whether to be a multi year investor, staying true to your discipline, or to be a quarterly trader when the circumstances (and your own skillset) allows.

2003 brought the Fund Manager's Dilemma more sharply into focus than ever before. Expect to see pressure form some Fund Families to turn investors into traders. Some managers will leave their present homes -- voluntartily or not -- to set up their own shop where tey can be truer to their own strategic positions.

Sunday, January 11, 2004 | 02:56 PM | Permalink | Comments (0) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference The Fund Manager's Dilemma?:


The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™