Case Studies

Fund Buy and Sell Lists

A global investment consulting firm wanted to strength its buy list for its global equity manager universe and identify managers that were at risk of underperformance where they were particularly unskilful given current economic conditions.

Without providing the names of managers, the investment consultant provided Parala with unique identifiers and historical returns for all the managers in its global equity universe.

Parala then analysed these managers using AlphaPredictor® which provided the following benefits for the client:

  • Aided their due diligence process by providing a rich data set through the lenses of AlphaPredictor® to understand each manager’s risk factor exposures, idiosyncratic and time-varying skills
  • Strengthened the firm’s global equity buy list by helping to identifying the managers that were likely to outperform their peer group and why
  • Strengthened the firm’s risk management by helping to identify which managers were likely to underperform given the current economic environment as well as managers that were behaving different than expected which was worth further investigation

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