The True Horizon of Hiring and Firing Managers: An Allocator Case Study

This study explores the true time horizon of institutional investors in their relationships with asset managers, their patience with those who underperform, and other factors that affect these important relationships. To implement strategic asset allocations, it is essential that the hiring (and firing) of asset managers be executed with minimum friction and cost. There is existing broad-based academic evidence on pre- and post-selection returns, but until now there has been no evidence on the true holding periods of allocators. II’s Allocator Intel has collected over 200 unique allocator responses globally to examine the true nature of the allocator/manager relationship.