Don't Look Back: Improving the Investment Manager Evaluation Process Part 1

The first of a series of articles by Novus, a New York-based alternative investment analysis platform provider, calls out traditional manager evaluation techniques as woefully inadequate. In part one of the series ‘Don’t Look Back: Improving the Investment Manager Evaluation Process,’ Stanley Altshuller, a founding partner at Novus asserts:

The industry places too much emphasis on subjective or anecdotal evidence and relies on historical performance data which is ‘non-predictive’, meaning it is inadequate in helping to inform investors about future performance.

Allocators are making manager selection decisions based on non-predictive data at the expense of predictive data, which is available but often overlooked by allocators.