Are we innocents abroad

[Tevita]

In some small way do local Fund Managers here have post facto manipulative power over our later investment decisions? Particularly if provided with regular newspaper columns

to disseminate their views. There is a quid pro quo aspect to investment advice that at first sight may seem gratis..

http://www.blacklistednews.com/10_weapons_Wall_Street_uses_to_manipulate_you/32917/0/38/38/Y/M.html

[winner69]

In some small way do local Fund Managers here have post facto manipulative power over our later investment decisions? Particularly if provided with regular newspaper columns

to disseminate their views. There is a quid pro quo aspect to investment advice that at first sight may seem gratis..

http://www.blacklistednews.com/10_weapons_Wall_Street_uses_to_manipulate_you/32917/0/38/38/Y/M.html

Of course they do .....no different than the rest of the world

In it for themselves .....management / performance fees and all those transactions oilin the cogs of the rest of the industry

And punters are happy, that's the main thing

[winner69]

In very simple terms alpha is the difference between an investment return and its benchmark (in reality it needs to be risk adjusted returns and all that sort f stuff)

So alpha is what the likes of Milford / Fisher make in excess of the benchmarks they use.

One formula I have seen for alpha is -

Smart Beta = Dumb Beta + Smart Marketing

Message was that fund management business is all snake oil stuff .....hence the use of Smart Marketing in the formula

Seems to be realistic when you honk about the sums spent on promoting themselves and the willingness of Gaynor and Carmel and others to pop up on TV and the radio and write newspaper columns.

The more of a 'rock star' you are the better your fund does eh. Yeah right ss in reality they don't actually do that well for investors

[blackcap]

In very simple terms alpha is the difference between an investment return and its benchmark (in reality it needs to be risk adjusted returns and all that sort f stuff)

So alpha is what the likes of Milford / Fisher make in excess of the benchmarks they use.

One formula I have seen for alpha is -

Smart Beta = Dumb Beta + Smart Marketing

Message was that fund management business is all snake oil stuff .....hence the use of Smart Marketing in the formula

Seems to be realistic when you honk about the sums spent on promoting themselves and the willingness of Gaynor and Carmel and others to pop up on TV and the radio and write newspaper columns.

The more of a 'rock star' you are the better your fund does eh. Yeah right ss in reality they don't actually do that well for investors

Classic Winner. Thank you for that.... SMART BETA = DUMB BETA + SMART MARKETING

I might have to run that one by professor Lally at VIc Uni and see what he makes of that one. :)