News Round Up

Value managers have recovered quite strongly both in an absolute sense and with respect to positive excess returns a study by Standard and Poors says.

The study of Australian fund managers says the global financial crisis exposed some distinct gaps in the risk controls of some of the best credentialled value managers, while some of the smaller and more focused boutiques performed strongly.

It says there was a reasonable dispersion in returns which suggests that the specific characteristics of the individual managers are far more important than style orientation during periods of extreme volatility.

It says some of the managers with very large teams demonstrated impressive track records before the global financial crisis, this did not seem to help during the crisis, with some of the managers with larger teams being the poorest performers.