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Asset management: Stock pickers hope to profit after 10 years of pain

One thing to start with: I’m Lawrence Fletcher, the FT’s Hedge Fund Correspondent, and I’m filling in for Harriet Agnew, who is on sabbatical this month.

Welcome to FT Asset Management. FT Asset Management is a weekly newsletter about the movers and shakers behind a multi-trillion dollar global industry. This article is the onsite version of the newsletter. SIGN UP HERE Have it sent directly to your inbox every Monday.

Does the format, content and tone suit you? Let us know: harriet.agnew@ft.com

Johnson’s position on the new market regime

It’s no secret that passive funds were big winners in the epic bull market of 2009-last year.

Investors believe that ultra-low-cost tracker funds will do a much better job, while paying high fees to fund managers trying to pick winning stocks.

However, many investors are finally realizing that the market landscape may have changed completely. Nikolai TangenHead of the Norwegian Sovereign Wealth Fund, warned this month Investors are investing for “long periods of time with very low returns”.

Our columnist Mohamed El-Erian,president Queen’s College Cambridge and advisor Allianz When Gramercy, explains what this means for investors.he believes Investors should pay more attention to individual security selection It points out the danger areas of passive investing.

Among the companies that may benefit from the new market environment are: franklin templetonan active management company with a history of 75 years its reinvention is being investigated by my colleague madison derbyshire.

Back in 1992, this company was about the same as a passive specialist. Vanguard, with approximately $90 billion in assets. Thirty years later Vanguard It has grown to $7.2 trillion, six times the size of Franklin, fueled by a boom in passive investing.

Franklin suffered badly after quantitative easing kicked in and growth stocks pushed the passive index up like a hot air balloon.star manager Michael Hasenstab The Templeton Global Bond Fund was embroiled in an ill-timed bet that left the company bleeding assets.

However, the company is now under a new CEO. jenny johnsonhas made bold acquisitions over the last five years, offering new technical capabilities and products in the alternative space.

Managers say they are well-positioned for the high-rate market, where stock picks will once again have a chance to prove their mettle. After more than a decade when bond buying lifted all ships, higher interest rates lead to higher volatility, which could prove fruitful.

Johnson, whose grandfather founded the California-based company, says Active isn’t dead yet. It’s just getting more professional.

Is Passive Investing Still Attractive?And can the Stock Picker really make a difference this time around? Email us your thoughts laurence.fletcher@ft.com When madison.darbyshire@ft.com.

FT’s ETF Hubis a site that provides news and analysis, market performance information, and daily insights about the exchange traded fund industry, and now has a mobile-friendly version.simply visit etf.ft.com on your phone.

Real estate redemption at Blackstone

black stoneIt is the world’s largest alternative asset manager.

Blackstone Property Partners businesses sold to pension funds and foundations Faces more than $5 billion in redemption claimsor 7% of its $73 billion net asset value. Antoine Gala.

However, the investor did not receive any cashback. Because the new money needs to come in before the company can comply with the withdrawal request.

This news comes from the company in less than two months. limited withdrawals The massive $125 billion Blackstone Real Estate Income Trust (Bright) owns a vast portfolio of assets that have risen sharply in recent years, including logistics facilities, apartments, casinos and medical clinics.

The move in December highlighted to investors the dangers of monthly liquidity in the underlying asset, which could take much longer to sell. Bright faced an increase in withdrawal requests this month.

But the company has been helped by billions of dollars of new funding invested by the government. University of Californiamade in an unusual arrangement.

Blackstone has promised UC a minimum annual return of 11.25% over six years, and these return guarantees include a hefty $1 billion backstop.

The money was deposited in Breit, but some investors could have gotten their money back if it had been deposited in BPP.

So are investors unhappy with this unusual relationship? Not according to Blackstone president Jonathan Gray. “We haven’t heard much from our clients in the institutional world,” he says, on the issue.

chart of the week

Industrial metals have risen since November on bets that China’s reopening will boost demand for raw materials, writes Harry Dempsey When George Steer.

A group of “base metals” led by tin, zinc and copper Over 20% surge in 3 monthsfurther supported by the US Federal Reserve suggesting a slowdown in the pace of rate hikes and a softening of the US dollar, which importers use to buy goods.

Star performer tin surged nearly 80% to $32,262 per tonne, its highest level since June, while copper prices rose to $9,329 per tonne this month on a brighter outlook for China’s economy following the easing of its zero-Covid policy. It rose one-tenth to the dollar.

“At the beginning of the year, everyone came in with very nuanced differences. [global] “In a recession, copper would dip in the first quarter and then rise, but we did the exact opposite.” Al Munro,broker Malex.

10 Stories You Can’t Miss This Week

Activist Elliott, Starboard Capital and Inclusive Capital Targeting software company Salesforce, its star has fallen from the peak of the pandemic. Investors say the company is overpaying companies, with one investor arguing that “everything should be considered.”

Indian billionaire Gautam Adani Over $50 billion was lost from the value of his business empire After US shortseller Hindenburg Research filed a fraud allegation this week,

black rock significantly increased spending on lobbying In the United States, last year, the world’s largest asset manager was attacked for using environmental, social and governance factors in its investments, rising 63% to $2.38 million.

Capital Group has named Mike Gitlin to head its fixed income division. become the next CEOcontinues to expand beyond its US equity fund roots as the world’s largest active asset manager.

The Financial Conduct Authority, the UK financial regulator, filed criminal proceedings It accused the former analyst of fund manager Janus Henderson and four others of conspiring to commit insider trading and money laundering.

Republican politicians lead backlash against climate-friendly investments “Put the facts aside” According to Ron O’Hanley, chief executive of State Street, one of the world’s largest index fund managers, it has lost sight of the needs of its long-term shareholders.

Billionaire hedge fund manager Bill Ackman became a minority shareholder After becoming one of the clients of British luxury watch brand Bremont, he provided financial support as the company plans to bring large-scale watchmaking back to the UK.

Top US Investment Manager We are recruiting In Europe, the quest for growth outside of China has doubled down due to tougher coronavirus measures and heightened geopolitical tensions.

Nest and Cushon, two UK pension schemes with combined assets of over £26bn, are jointly seeking investment partners. Develop new forestry investment strategies Address the pressures of climate change.

UK stocks are No longer considered a “must own” asset classaccording to the Investor Forum, a group representing some of the world’s largest investors, is seeking a reset of ties with UK companies to boost market growth.

And finally

Marianela Nunez as Princess Aurora © ROH. Photographed by Andrei Uspenski

sleeping beauty It was the first performance of the Royal Ballet when London’s Royal Opera House reopened after World War II.family favorite I will be back until June 6th, invites the audience to enjoy both Tchaikovsky’s music and Oliver Messel’s gorgeous staging.Marianela Nuñez as Princess Aurora and Vadim Muntagirov as Prince Florimund simply sublime.

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https://www.ft.com/content/a4b5d62e-5520-4147-bb82-ec6fe4594d86 Asset management: Stock pickers hope to profit after 10 years of pain

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