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.

 

If you would like to be considered for inclusion in InvestmentEurope’s Editorial Board, please email the editor at: jonathan.boyd@odmpublishing.com

ABOUT THE AUTHOR
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 16 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.

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