The Great Debate UK

from Funds Hub:

Risk Management: Did fund managers learn their lesson?

By Detlef Glow, Head of EMEA Research at Lipper. The views expressed are his own.

In the last decade investors and fund managers faced two major crises in the stock markets, the popping of the technology bubble in 2001 and financial crisis starting in 2006.

Portfolio managers suffered average losses of about 50 percent in the wake of both crises, leading investors to question what their fund managers learned.

A Lipper and Avana Invest study on the maximum drawdown of actively managed funds found that those fund managers must have introduced new risk management tools after the bust of the technology bubble. Still, they failed to meet investor expectations on managing risk.

from Global Investing:

I blame the fund managers

I've been building up a couple of dummy funds on Reuters' new Portfolio tool. Not only is it a welcome diversion from actual work, but it allows me to test the mettle of the fund managers we speak to, and check out the guidance offered by the Lipper Leader fund rankings.

One of my portfolios uses the stock picks and short ideas offered up by the managers we interview for the many FUND VIEW stories which dot the Reuters wire. The other simply picks some of the funds which score highest across the Lipper fund sectors.

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