Investment Firm Culture: A New Take on Manager Selection and Social Responsibility

Practical Applications, vol. 3, no. 2, Fall 2015

Posted: 8 Feb 2017

See all articles by Jason C. Hsu

Jason C. Hsu

Rayliant Global Advisors; Research Affiliates, LLC; University of California, Los Angeles - Anderson School of Business

Date Written: November 1, 2015

Abstract

For investors, one question stands above all others: “How do we identify outperforming managers?” Every year, institutional investors issue hundreds of RFPs seeking managers to replace those who have underperformed. In aggregate, asset owners and investment consultants spend vast amounts of money and countless hours researching managers and their strategies. This massive spend is how the industry has responded to academics’ indictment of active portfolio management. Investors and consultants have long been able to shrug off research demonstrating that the average active manager underperforms net of fees. “After all,” they say, “we do not hire the average investment manager; we choose the best of breed.”

Suggested Citation

Hsu, Jason C., Investment Firm Culture: A New Take on Manager Selection and Social Responsibility (November 1, 2015). Practical Applications, vol. 3, no. 2, Fall 2015. Available at SSRN: https://ssrn.com/abstract=2913299

Jason C. Hsu (Contact Author)

Rayliant Global Advisors ( email )

Hong Kong

Research Affiliates, LLC ( email )

620 Newport Center Dr
Suite 900
Newport Beach, CA 92660
United States

HOME PAGE: http://www.jasonhsu.org

University of California, Los Angeles - Anderson School of Business

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

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