Thank you for publishing the interview with me (Face to Face, Pensions & Investments, Nov. 28). You were very kind, and I am most grateful. The capital asset pricing model — and its Basel equivalent — remain under sustained attack, and pension investors need to think through the implications for them of this potentially catastrophic decay of the basic model.
I am, however, distressed that the summary of our commodity stock investing made it seem as if the two of us in Coxe Advisors did it all, which is, of course, very wrong.
We started it, but since then Harris Investments has taken a bigger and bigger share of developing the business and managing the funds. The three analysts who cover the equity groups are all employees of Harris and are fully dedicated to the project. The trading has from the outset been executed by Harris, not Coxe Advisors, and the same experienced trader has been managing the varying portfolios throughout. In addition, senior officers of Harris have been heavily involved as the business has grown, most notably Ernesto Ramos, the research director, to whom the analysts report.
I explained this “two partner” partnership at our interview, and when you received the full performance data you saw the Harris logo on the results.
I have no doubt that the problem arose because of space problems, because the interview was primarily about the CAPM and the discussion of commodity stock investing was a tag end, and the space you had for including the performance data made no reference to the number of personnel involved in the project. Harris is not only in charge of the project now, but is responsible for offering variations of it globally through BMO Asset Management, and we'd certainly like to clear up any misunderstanding.
Donald G.M. Coxe
Coxe Advisors LLP