Tuesday, August 31, 2010
MWRR @ subportfolio level
Who controls the flows at the subportfolio level? Well, if it's a managed account it's the portfolio manager...so why wouldn't you want to use money-weighting to capture these decisions? And if it's the client, then again, why wouldn't you want to capture the buy and sell activity?
Money-weighting is the way to go. [full stop!]