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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