A potential separation between alpha managers and others could grow over the next decade, says Harry Liem, a senior associate at Mercer.
Mr. Liem, author of the new book “2020 Vision: Investment Wisdom for Tomorrow,” said a tougher monetary environment, global economic imbalances, increased competition and heightened interest in alternatives all point to the split among money managers. “Only those players able to adapt themselves faster than their competitors will maintain their leading edge,” Mr. Liem said in a news release concerning the book.
Also in the book, emerging markets is seen as the possible future growth engine of the world at a time of economic slowdown in the U.S. “The pendulum of history which swung so visibly and decisively towards the West in the past 200 years is now beginning to return at an accelerating pace towards a 21st-century world dominated by the East, in wealth, population, technology and economic dynamism,” Robert Lloyd George, chairman of Lloyd George Management, is quoted in the book.
“2020 Vision” is based on 12 interviews from leading professional and academic figures, including Stan Beckers, managing director and head of alpha management at BGI; Ray Dalio, chairman and CEO at Bridgewater; and Ben Inker, CIO at GMO.