Sean Peche, PM and founder of Ranmore Fund Management, was my special guest on the Investment Community podcast. You can listen to the conversation with Sean here.
In this episode, Sean tells:
- Why it’s important to be careful about stock stories. The stock price changes long before the story does, and by the time the story changes, you’ve lost your money.
- How value managers are just as prone as growth managers to falling prey to false narratives about stocks and markets.
- How there’s a lack of evidence that larger investment teams deliver better investment performance than smaller teams.
We also discussed:
- The challenge for active managers to convince their clients that their management fee is good value compared to the fees charged by passives.
- Whether performance fees incentivise fund managers to perform better, or whether these fees simply induce them to take more risk.
- The possibility of a backlash against performance fees, and especially against fund managers’ attempts to reset their high water marks.