The Ghosts of Commentary Future

“Are these the shadows of the things that Will be, or are they shadows of things that May be, only

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  1. Avatar for Zenzei Zenzei says:

    Hey Rusty…I’ve been looking forward to Epsilon Theory’s top ten predictions for 2021. when do y’all think you will have that ready?

  2. Avatar for rguinn rguinn says:

    It’s going to be a great year for Top Ten predictions!

  3. Fun story that I hope you’ll enjoy.

    My firm has an internal SMA, access to about a million external ones, and one that’s kind of a weird hybrid. They aren’t a wholly owned subsidiary, but 95% of their AUM comes from our firm and they don’t accept any outside money. They run the shop as they please–and they’re pretty good as far as that goes–and they are quite accessible to us lowly FAs. They have a fund that is based entirely on our company’s research. If we don’t cover it then it’s not in the fund. The MD told us at a meeting that not one single dollar from anyone within his group of employees or PMs is in said fund. He was explicitly telling us to not buy this dog for our clients. See, he answers to all the FAs, and when we have a client get burned by a bad fund we pull everything and go elsewhere. All his other funds perform well, or at least they don’t embarrass him. But this one fund, the research fund, is an embarrassment. Our company puts out research that very few read, even fewer take seriously, and that is utterly ignored–accept for a contractual obligation–by PMs. That should tell you all you need to know about this particular corner of the financial services world.

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