sequence of filters is employed by us to reduce
the fund manager's performance to quantifiable
terms. The intention is to identify the quality
of performance and ascertain the manager's capability
to repeat the performance. Never once do the returns
generated by the fund figure in the chosen parameters
that we employ to ascertain management competence.
Returns are the result of doing myriad activities
right. So it makes sense to distill the characteristics
of the manager over a defined time period and
extrapolate the DNA to reach a conclusion.
rigourous process of eliminating “chance”
leads to higher predictive quality. As the process
involved is completely quantitative, it eliminates
bias and imparts clarity.