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“What is the truth? A flexible army of metaphors. There are no facts, just interpretations.” Perhaps it is a daring statement by Friedrich Nietzsche, but perhaps it is, occasionally, also a status description of the areas of investment market projection or portfolio management. Those people, who label the study of national economics as a “pseudo science,” point toward the financial market crisis and the significance or non-significance of investment market projections. The Golden Mean – Not Always the Wrong Approach Realistic expectations can do wonders at times. Between damnation of investment market projections or market assessments in the area of portfolio management and indiscriminating faith, other points of view exist. As much as the banker is not the guarantor for the outperformance of all client portfolios, the projecting analyst is not the keeper of the truth and wisdom grail either. Both professions know their trade, methods, and utilize particular “thought constructions” – no more, no less. Constructively viewed, enlightenment, risk management, and asking the right questions could be a demand for the profession. And, of course, there are good bankers and good financial analysts, despite all the bad press. Frankfurt Impressions – Round Table and Presentations What can lower expectations of financial analysis and portfolio management lead to? The institutional investor, for example, may lose his or her illusion that a third party’s assessment and projections can actually replace his or her own investment decision-making process: decision making, defining asset allocation, and developing one’s own (!) market prognosis. Based on personal experience with panel discussions, presentations, and based on direct “project exchange of thoughts” with investors, it is amazing that many market participants increasingly realize the value of “research,” market projections, and trend analysis of independent asset managers. Fund boutiques private label fund initiators of investment companies such as Universal Investment, Hauck & Aufhäuser, IP Concept and many others will have to face this challenge. Next to the performance criterion, an interest in alternative sources of investment market observation exists for investors. Creativity is called for; know-how adds to customer retention; opinions are important: “Where nothing is true, anything goes” (Friedrich Nietzsche). ________________________________________ Feedback, additional thoughts, experience or any kind of dialogue on such context is most welcome; please contact [email protected] or Mary Daute (Asst. Manager). Phone: + 49 17 66 33 66 094
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Friedrich Nietzsche, Fund Boutiques, and the “Truth”
By Markus Hill, Independent Asset Management Consultant
(Published only in German, www.finanzen.net)
“What is the truth? A flexible army of metaphors. There are no facts, just interpretations.”
Perhaps it is a daring statement by Friedrich Nietzsche, but perhaps it is, occasionally, also a
status description of the areas of investment market projection or portfolio management.
Those people, who label the study of national economics as a “pseudo science,” point toward
the financial market crisis and the significance or non-significance of investment market
projections.
The Golden Mean – Not Always the Wrong Approach
Realistic expectations can do wonders at times. Between damnation of investment market
projections or market assessments in the area of portfolio management and indiscriminating
faith, other points of view exist. As much as the banker is not the guarantor for the
outperformance of all client portfolios, the projecting analyst is not the keeper of the truth and
wisdom grail either. Both professions know their trade, methods, and utilize particular
“thought constructions” – no more, no less. Constructively viewed, enlightenment, risk
management, and asking the right questions could be a demand for the profession. And, of
course, there are good bankers and good financial analysts, despite all the bad press.
Frankfurt Impressions – Round Table and Presentations
What can lower expectations of financial analysis and portfolio management lead to? The
institutional investor, for example, may lose his or her illusion that a third party’s assessment
and projections can actually replace his or her own investment decision-making process:
decision making, defining asset allocation, and developing one’s own (!) market prognosis.
Based on personal experience with panel discussions, presentations, and based on direct
“project exchange of thoughts” with investors, it is amazing that many market participants
increasingly realize the value of “research,” market projections, and trend analysis of
independent asset managers.
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Fund boutiques private label fund initiators of investment companies such as Universal
Investment, Hauck & Aufhäuser, IP Concept and many others will have to face this challenge.
Next to the performance criterion, an interest in alternative sources of investment market
observation exists for investors. Creativity is called for; know-how adds to customer
retention; opinions are important: “Where nothing is true, anything goes” (Friedrich
Nietzsche).
Feedback, additional thoughts, experience or any kind of dialogue on such context is
most welcome; please contact [email protected] or Mary Daute (Asst. Manager).
Phone: + 49 17 66 33 66 094
Markus Hill
Markus Hill (MSc in Economics) is an independent asset management consultant based in
Frankfurt, Germany Professional experience includes SEB Bank and Credit Suisse Asset
Management. In addition, he worked as head of sales and PR for a German fund boutique.
Since 2005 he specialized in the management of mandates, sales, marketing, and PR
(consulting, "introducing"). Markus is also involved in selecting themes in the specialist areas
of target funds with a multi-management aspect, fund boutiques and mutual funds for
institutional investors (product scouting, fund selection). Furthermore he is actively engaged
in cooperation with the market-leading Private Label Funds/Master KAG in Germany
(Universal-Investment) promoting the idea of independent asset management and was the Co-
Initiator of the first all-German Consultant survey in 2005 and the first "UCITS-survey" in
2003. Market entry into Germany, behavior of fund selectors and fund providers in German
asset management industry are often discussed by him, e.g. in his asset-management-
publication MH-Focus. Through many articles, columns and presentations (national and
international) he has become a highly recognized expert in the German asset management
industry. "Industry multiplier" is a term often used by journalists and clients to describe his
style and personality. (Markus Hill/ MH Services assigned in the role of Media Partner
for: UCITS Alternatives Conference in Zürich, September 2011)
Markus Hill MH Services
email: [email protected]
website: www.markus-hill.com
phone: 0049 (0) 69 280 714 mobile: 0049 (0) 163 4616 179
