A Translation Guide to Asset Manager-SpeakNow is a good entry...

A Translation Guide to Asset Manager-Speak

• Now is a good entry point = Sorry, we are in a drawdown
• We have a high Sharpe ratio = We don’t make much money
• We have never lost money = We have never made money
• We have a great backtest = We are going to lose money after we take your money
• We have a proprietary sourcing approach = We invest in whatever our hedge fund friends do
• We are not in crowded positions = We missed all the best-performing stocks
• We are not correlated = We are underperforming while the market keeps going up
• We invest in unique uncorrelated assets = We have an illiquid portfolio which can’t be valued and will suspend soon
• We are soft-closing the fund = We want to raise as much money as we can right now
• We are hard-closing the fund = We are definitely open for you
• We are not responsible for the bad track record at our prior firm = We lost money but are blaming all our ex-colleagues
• We have a bottom-up approach = We have no idea what markets are going to do
• We have a top-down process = We think we know what markets will do but really who does?
• The markets had a temporary mark-to-market loss = Our fundamental analysis was wrong and we don’t know why we lost money
• We don’t believe in stop-loss limits = We have no risk management