Emmanuel Ferry comments on volatility and alpha generation

Emmanuel Ferry is CIO at Banque Pâris Bertrand Sturdza SA (PBS) in Geneva, and a member of InvestmentEurope’s Editorial Board.

In March 2017 he commented on the following question:

Q. Do you wish for a rise in volatility to be able to better spot the alpha generators?

A. Alpha generation is a function of skill and opportunities. Since the great financial crisis, the opportunity set has been challenged by the implicit bid by central banks in the market – dispersion has collapsed and macro correlation has skyrocketed.

2011-16 was the fourth secular episode in half a century of active funds underperformance. Historically, the low point of underperformance is followed by a mean-reverting recovery. The normalisation in interest rates, inflation and policy mix, supports the case for active investing beating passive investing.


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Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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