A To-Do List for Active Managers

A new book entitled Winning at Active Management: The Essential Roles of Culture, Philosophy, and Technology, co-authored by William Priest, CEO at Epoch Investment Partners, addresses the reasons behind the difficulties active managers are facing as well as some strategies they can use to overcome them. An excerpt of the book was recently published in Barron’s. It argues against the notion that recent underperformance indicates efficiency of the markets. Instead, it suggests that active managers must be able to understand the underlying causes of price inefficiencies in order to exploit them and, further, must recognize that they are subject to […]

2 Percent Growth is the New 4 Percent According to Epoch’s Priest

  William Priest, CEO and co-CIO of Epoch Investment Partners, says “2% [growth] is the new 4% as far as developed markets are concerned.” He continues: “Global GDP is a function of just two things – it’s growth in the workforce and growth in productivity.” However, he pointed out in this video on CNBC that lower growth does not necessarily mean lower cash flow. He suggested that, while there may be less capital investment than one would like, we will “see a continuation of lots of [merger and acquisition] activity.” Further, he expects “continued growth of what we call share-holder […]

The “Art of Successful Investing” with Zulauf, Black, Herro & Priest (Part I)

Last month, Barron’s published stock picks of eight leading investors who participated in its AOSI conference.  Below are several of the longer-term trends identified by these industry leaders. Felix Zulauf, president of the hedge fund Zulauf Asset Management, sees a bear market. “We are in a recovery rally in the early stages of a cyclical bear market,” he says. After possible upward bumps for the remainder of 2015, he continues, “I see a bear market around the world, including the U.S. . . . The S&P could decline to 1600.” He explains. “we are in a deflationary cycle,” while attributing much […]