Real quick, I want to thank everyone who came out for drinks last night in LA. I had the pleasure of meeting a lot of my peers who work as investment advisers and asset managers from the area and it was amazing how much we all have in common despite our geographic differences.
One topic that came up a bunch was benchmarking and what an appropriate performance measure is for the various types of accounts we manage. I like this take on the concept from the President of BlackRock (one of the world’s largest asset management firms), Robert Kapito…
From Investment News:
A phrase in vogue in corporate circles these days is “measure or be measured.” Financial services is a business of measures. We focus on returns, alpha and beta, standard deviation and reversion to the mean. We measure everything we do against benchmarks.
But too often, our industry has forgotten the most important benchmark of all: our responsibility to the people we serve. They are the reason that our industry exists.