A Cry of Candor in the Wilderness of Portfolio Management
From a letter to Pensions & Investments magazine, October 3, 2005 issue, sent by reader and portfolio manager Kenneth S. Phillips:
"For better returns, free the money managers," by Vince Calio describes a JPMorgan study that advocates directing traditional long-only managers to go short because such flexibility will add more value. The gaping error in this logic is that it assumes the managers have skill, which history has shown to be a spectacular leap of faith.