A Quote by Michael Lee-Chin
The objective of the customer is not being met if the fund managers are diversifying their assets into hundreds of businesses. If they do this, they are typically performing close to the indexes. But that's not the way wealth is created.
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I'm making a case against how money managers are handling customers' money. The objective of the customer is not being met if the fund managers are diversifying their assets into hundreds of businesses. If they do this, they are typically performing close to the indexes. But that's not the way wealth is created.
I think there are probably too many hedge fund managers in the world, as well as active fund managers. The hedge fund industry is very efficient. We see a lot of hedge funds open and a lot close. It's very binary. You either succeed or fail in the hedge fund world. If you succeed, the amount the managers make it beyond most people's wildest dreams of wealth.
Mutual fund managers want your money in their funds. They get paid based on assets under management.
Hedge fund managers charge so much more than mutual fund managers; alpha is even harder to come by. They end up selling a variety of things beyond mere outperformance.
[With] closet indexing....you're paying a manager a fortune and he has 85% of his assets invested parallel to the indexes. If you have such a system, you're being played for a sucker.
The outside-in discipline requires that you have an explicit customer-based reason for everything you do in the marketplace. Managers need to create what I call "customer pictures," verbal descriptions of customers that highlight the key customer characteristics and make those customers come alive. Although managers never know as much about customers as they want and need to know, the outside-in discipline requires that they construct customer pictures anyway, basing the pictures on whatever hard data they have plus hypotheses and intuition.
The conservative media game was neatly summarized by Matt Labash, a former senior writer for The Weekly Standard, in a 2003 interview on the website journalismjobs.com. Labash explained: 'The conservative media likes to rap the liberal media on the knuckles for not being objective. We've created this cottage industry in which it pays to be un-objective. It's a great way to have your cake and eat it too. Criticize other people for not being objective. Be as subjective as you want. It's a great little racket.'
Fund investors are confident that they can easily select superior fund managers. They are wrong.
Index funds have regularly produced rates of return exceeding those of active managers by close to 2 percentage points. Active management as a whole cannot achieve gross returns exceeding the market as a while and therefore they must, on average, underperform the indexes by the amount of these expense and transaction costs disadvantages.
We have a terrific team, and our managers are terrific managers, but we have made it too complicated for them and too complicated in a way that they just can't do an excellent job in many cases when it comes to the customer experience.
I'm constantly amazed that owners and managers of all businesses don't train their people to call the person who pays by credit card by name. It definitely makes the customer feel good and will be a factor in bringing them back to your place of business.
We've created this cottage industry in which it pays to be un-objective. It pays to be subjective as much as possible. It's a great way to have your cake and eat it too. Criticize other people for not being objective. Be as subjective as you want. It's a great little racket. I'm glad we found it actually.
I'm the chairman of the board of the Actor's Fund. It's an incredible organization. It helps anybody that has made their living in the performing arts and entertainment: actors, singers, dancers, film producers, agents, managers, ticket takers, writers, anybody in times of need or crisis.
Businesses once grew by one of two ways; grass roots up, or by acquisition... Today businesses grow through alliances - all kinds of dangerous alliances. Joint ventures and customer partnerings which, by the way, very few people understand.
The state has no wealth it hasn't stolen, and the state has no assets whatsoever, except those which individuals have created in the first place and the state has taken.
Here's what income and wealth inequality is about. Last year, the top 25 hedge fund managers made more than 24 billion, enough to pay the salaries of 425,000 public school teachers. This level of inequality is neither moral or sustainable
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