MPI Research Corner

Can a fund whose alpha is positive significantly underperform the market? Yes, it can. This is a common question we receive during our clients’ Quarterly reporting, so we felt it worth addressing this phenomena – and taking a quick look at funds that gain this distinction. There is a common misperception that alpha means outperformance [...]

Salient Points: 1.  Over the past 12 months, GMO Quality emerged as the best ‘timer’ or sector allocator of any fund in the large- and multi-cap U.S. equity universe, when weighed against the S&P 500. 2.  Ironically, the fund is known for its stock selection. 3.  Its outperformance is attributable to consistent, steady exposure to [...]