{"id":737,"date":"2016-01-13T12:58:15","date_gmt":"2016-01-13T12:58:15","guid":{"rendered":"http:\/\/www.omservices.org\/?p=737"},"modified":"2016-01-13T17:30:09","modified_gmt":"2016-01-13T17:30:09","slug":"seeking-alpha-through-maturity-analysis","status":"publish","type":"post","link":"https:\/\/www.omservices.org\/?p=737","title":{"rendered":"Seeking True Alpha through Maturity Analysis"},"content":{"rendered":"

\"FTSE<\/a>Investing is an activity as old as money and although the data and technology has changed beyond all recognition since the ‘big bang’<\/a> in the City of London in 1986, fundamental statistical theory has not. \u00a0When it comes to assessing the performance of pension fund and investment managers, for example, we tend to see comparisons with standard indexes such as the FTSE 100 or S&P 500. That makes sense if competitive markets work efficiently and effectively with underperformers being forced to raise their game. \u00a0But what if all the companies in the index are underperforming relative to their potential?<\/p>\n

At a recent responsible investment meeting, the head of responsible investment from a highly respected investment house, remarked that “most companies are mediocre” \u00a0performers in terms of management capability and quality. That is what conventional, bell curve analysis would suggest but it is not true when an outstanding company re-sets the benchmark for management quality (for a simple explanation of this please view our 3-minute video*).<\/p>\n