Carol Geremia, President of MFS Investment Management, explains the firm's explicit long-term fiduciary horizon and rejection of industry short-termism.
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“We do not believe that we exist to generate alpha over short measurement periods like one, three, and five. Our goal is to outperform over a full market cycle”
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More from Carol Geremia
PredictionDidn’t hold up
Geremia: ESG will cease to be an investment term within three years
“The most exciting to me is that ESG will go away. It will not be an investment term in three years, and it has nothing to do with it not being super important.”
Carol GeremiaDec 15, 2022▶ 36:42Carol Geremia - Creating Long-Term Value for (almost) 100 Years at MFS (Capital Allocators, EP. 287)
Opinion
Geremia: Obsessive Growth at Any Cost and Passive Capital Have Hit Limits
“I think what we're seeing today is that obsessive growth at any cost is over. I think we're seeing the limitations of passive capital. I think we're seeing the limitations of short-term alpha. I think we're going to start to desperately realize how important l…”
Carol GeremiaDec 15, 2022▶ 29:33Carol Geremia - Creating Long-Term Value for (almost) 100 Years at MFS (Capital Allocators, EP. 287)
Disclosure
Geremia: MFS Avoids Active ETFs Because They Cannot Be Closed for Capacity
“We have looked a lot at active ETFs as an example, but here's the problem with ETFs. You can't close the products. How do you manage capacity, and how do you protect performance as an active manager? That is the sole reason we have not offered an active ETF.”
Carol GeremiaDec 15, 2022▶ 34:39Carol Geremia - Creating Long-Term Value for (almost) 100 Years at MFS (Capital Allocators, EP. 287)
Opinion
Geremia: Skeptical that investment personalization actually serves client needs
“I think there's a lot of talk about personalization, and I'm a little skeptical on that, because again, I'm not sure that's actually, it sounds good, and it sounds like it's about the customer. I'm not sure that's actually What the customer needs. I think it's…”
Carol GeremiaDec 15, 2022▶ 48:33Carol Geremia - Creating Long-Term Value for (almost) 100 Years at MFS (Capital Allocators, EP. 287)
Insight
Geremia: Full market cycles take 7-10 years, but benchmarks measure half
“The measurements that the industry anchors around are usually half a full market cycle. Anywhere between seven and 10 years is a full market cycle.”
Carol GeremiaDec 15, 2022▶ 18:31Carol Geremia - Creating Long-Term Value for (almost) 100 Years at MFS (Capital Allocators, EP. 287)
AssertionSupported
Geremia: MFS stock holding duration is 3-4x the industry average
“When you even look at the average holding of a stock inside our portfolios, it's three to four times the industry average.”
Carol GeremiaDec 15, 2022▶ 19:15Carol Geremia - Creating Long-Term Value for (almost) 100 Years at MFS (Capital Allocators, EP. 287)
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