AllianceBernstein Says Active Funds Should Aim to Beat Inflation, Not S&P 500
- Fraser Jenkins advises using inflation to measure fund returns
- It sets high bar when almost everything is down on hawkish Fed
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The new era of runaway inflation means it’s time to stop measuring active investment managers’ performances against benchmarks like the S&P 500.
That’s the take from Inigo Fraser Jenkins, one of the most famous quant analysts on Wall Street. In a research paper published this week, he and his colleagues said that simply matching or beating a broad index likely doesn’t deliver enough excess return to keep up with inflation that has made covering living expenses harder by the day.