Who should be using this information?
1) Portfolio managers who can actively trade and seek to make good absolute returns or to beat the S&P 500
2) Family offices or pension funds with active managers who keep track of active managers and want to know that their aggregate risk is appropriate given the markets’ potential upside
3) CIO’s and risk department managers who oversee internal PM’s and manage firm-wide exposure
4) Active high-net worth investors who can act on information that tells them if markets are attractive or ripe for a decline
Returns have been wanting for some time and most active managers are either failing to beat the market or provide returns that are commensurate with fees. We believe you can’t get away with not having a market view (and being right) if you are to generate significant positive returns.
These indices of potential upside are an excellent predictor of market returns.