Heard Capital LLC’s Joe Lee and Novus’ Brett Turenchalk released a report entitled “Detecting False Negatives: Data Driven Approach to Manager Due Diligence”.
When it comes to evaluating investment managers, there is a tendency to settle for “one-size-fits-all” risk/return metrics. Returns, beta, correlation, and volatility don’t reveal the complete narrative, however, and an over dependence on these can give rise to serious inefficiencies.
To read the full report, please click here.