Volume 1, Number 2, Second Quarter 2003
The physical world is composed of phase shifts, and we generally accept and understand the implications. The failure to recognize a phase shift that has taken place is exemplified by the perception of investment people about where they stand in the world … even what they stand for. I was part of the first AIMR group to embrace performance standards that implies phase shifts do not take place.
We complain about fair disclosure thinking it might inhibit access, but access comes at the price of acquiescence, a coin of our clients that we have been willing to pay for them. We should be willing to adopt high standards of personal behavior, such as classifying ourselves as insiders with respect to our personal investment accounts.