PT  - JOURNAL ARTICLE
AU  - Mike Sebastian
AU  - Sudhakar Attaluri
ED  - Kramer, Leslie
TI  - Practical Applications of Conviction in Equity Investing
AID  - 10.3905/pa.2014.2.2.068
DP  - 2014 Oct 31
TA  - Practical Applications
PG  - 1--5
VI  - 2
IP  - 2
4099  - https://pm-research.com/content/2/2/1.3.short
4100  - https://pm-research.com/content/2/2/1.3.full
AB  - Conviction in Equity Investing Mike Sebastian Sudhakar Attaluri “Traditional active equity management is broken, because our industry plays the game but doesn’t believe in it,” maintains Mike Sebastian, a Partner at Aon Center for Innovation and Analytics (ACIA) in Singapore. “Investment managers, asset owners and consultants all need to step up to fix it,” he warns.In Conviction in Equity Investing , which appeared in the Spring 2014 issue of The Journal of Portfolio Management, Sebastian and co-author Sudhakar Attaluri, Senior Consultant at Aon subsidiary Hewitt EnnisKnupp in Chicago, offer a detailed analysis of active public equity managers from 1975 to 2011. They find that even the successful ones up short, gobbling up alpha with fees and expenses.In this Practical Applications report, Sebastian recommends that investors hold their active asset managers to a higher standard—or revert to a passive strategy. Before you do anything, though, you have to know what type of investor you are.TOPICS: Private equity, equity portfolio management, VAR and use of alternative risk measures of trading risk