Christoph Hott

“Within Sal Oppenheim’s Fonds Office we evaluate two aspects of performance: return and risk (as defined by the standard deviation of returns and tracking error versus the benchmark). It is important to remember that most managers experience out- and under-performance over a market cycle. While relative performance is therefore unstable over time, the types and level of risk assumed by a manager in his search for ‘alpha’ is generally much more stable. In other words, managers who are much more aggressive than the benchmark tend to maintain that level of aggressiveness over time.”