Carol Geremia, President, MFS Institutional Advisors Inc
– A misalignment between investors and their asset managers could be causing them to forfeit the full value of active management.
– The disconnect is most evident through mismatched investment time horizons, where investors expecting alpha (ie outperformance) over increasingly short time periods don’t invest through a full market cycle, often leaving alpha on the table.
– Correcting the misalignment by helping investors define long-term objectives and more effectively assess and measure active skill could result in better investment outcomes.
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