High-conviction approach pays

With the recent volatility across all areas of all markets, research has shown that managers with the courage to put their money where their mouths are will reap the rewards in the year to come

Recent events and their impact on some highly leveraged hedge funds show the advantage of a qualitative, high-conviction approach to fund management that focuses on primary research and fundamental stock analysis. For instance, over the past 12 months, research reports and findings have driven exits from financials and further downgrading of exposure to Japan. Sophisticated quantitative screening for price anomalies can play a role in an investment process, but human study of global trends and growth drivers is vital to protect against the risk of unforeseen events not anticipated by mode...