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Benchmarks and Investment Management

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To highly skilled managers, benchmarks are confining, but to managers without the ability to consistently add alpha and to investors, benchmarks are a boon. In this Research Foundation monograph, the author explores many issues surrounding investment benchmarks and benchmarking and outlines a compromise that might ease the natural tension between active managers who believe they have real skill and bristle at the need to be measured by benchmarks and investors who want a benchmark so they can measure performance.

About the Author(s)

Laurence Siegel
Laurence B. Siegel

Laurence B. Siegel is the Gary P. Brinson Director of Research at CFA Institute Research Foundation and an independent consultant. He has authored, edited, or co-edited six CFA Institute Research Foundation monographs and is the author of Fewer, Richer, Greener, published by Wiley in 2019. Mr. Siegel serves on the editorial boards of several prominent journals and on the board of directors of the Q Group and the American Business History Center. He has assisted a variety of nonprofit organizations in the role of investment committee chair or member. Previously, Mr. Siegel was director of research in the Investment Division of the Ford Foundation. Before that, he served as a managing director at Ibbotson Associates (now Morningstar). His website is www.larrysiegel.org. Mr. Siegel received a BA in urban geography and an MBA in finance from the University of Chicago.