Mauboussin: Institutional Agency Friction Drives Harmful Action Bias Over Patience
Michael Mauboussin · Michael Mauboussin – Who's on the Other Side (Capital Allocators, EP.99) · May 13, 2019 · at 49:44
Michael Mauboussin, Director of Research at BlueMountain Capital Management, explains governance friction in institutional asset management with host Ted Seides.
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“If there's poor performance, alarm bells come up and down the chain and the committee doesn't say like, Let's do nothing. They always say, like, we should do something, right? So this notion, and by the way, I think it's a Western thing, maybe an American thing, too, like this notion toward action or activity versus doing nothing, you know. So sometimes just sitting on your hands is the best thing to do, and it's very difficult when you have a number of folks which may not be completely aligned in terms of the end objective.”
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