Bridge over ocean
1 July 2011 Financial Analysts Journal Volume 67, Issue 4

Identifying Characteristics to Predict Separately Managed Account Performance

  1. James D. Peterson
  2. Michael J. Iachini
  3. Wynce Lam

The authors analyzed a large sample of domestic equity separately managed accounts over the 1991–2009 period and found evidence that manager skill persists. They also found that managers who were more active had better returns, and they documented a strong negative relationship between assets under management and future performance, even for large-cap strategies. Large cash inflows and a high number of accounts under management hindered subsequent performance for small-cap strategies.

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