advisor-perspectives
The 27% Problem: Why Manager Evaluations Mix Signal With Noise
By Mark Tennenbaum
A manager who underperformed last year during a high-correlation stretch but shows consistent alpha opportunity alpha over three years is demonstrating something specific: They can do the job when conditions allow, and conditions did not allow it much last year. A manager who shows weak alpha opportunity alpha across three years and a high-stress period that happened to cut in their favor is demonstrating something different.