Our analyses

Timing
Our timing analysis identifies a manager’s skill and behavioural patterns when deciding which stocks to buy and sell.

This analysis:
• uses our proprietary 'Trading P&L' component to identify whether the trades added or detracted from the portfolio’s return
• quantifies how stocks performed before and after each trade to identify whether managers fall into the typical traps of buying late and selling early
• identifies persistency in these behaviours, with a time series of returns from the trades in each month
• gives complete access to all underlying trade data

Typically we find that managers are skilled at deciding which stocks to buy, but undermine performance gains by cutting their winners too early and holding onto losers for too long.

Poor decisions when selling typically cost portfolios 100 basis points per annum.

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