Revealed: The extra performance added by top managers

A successful manager can add as much as 5% to the value of a fund every year, according to a new study.

Inalytics, a specialist manager evaluation firm, has published findings which it said shows for the first time just what a skilled manager actually adds to the returns gained by investors. The study focuses on three characteristics including assessing the impact of a manager's ability to get more than half their decisions right, to run their winners and to know when to cut their losers each had. The research was carried out on 760 equity portfolios from around the world and claims to present empirical evidence on the distribution of ‘Hit Rates', the number of correct decisions as a pe...