ARC looked at 3,000 private client portfolios within the ARC GBP SG universe, from 2007 to date, and separated them out into three equally sized groups based on their risk-adjusted performance.
While the bottom and middle tercile portfolios marginally outperformed in the market recovery phase, when market sentiment abruptly turned positive, in terms of cumulative returns, the top percentile maintained its dominance.
“There are a handful of investment managers who have successfully executed the winning game, thereby emulating Roger Federer,” said ARC.
“However, for most private client investors, selecting a manager who adopts the loser’s game strategy presents the higher probability of outperformance of both the peer group average and a passive portfolio.”
