TY - JOUR T1 - Slouching Trader—Hidden Drag on Performance JF - Trading SP - 54 LP - 58 VL - 2002 IS - 1 AU - Robert Werner Y1 - 2002/03/20 UR - http://guides.pm-research.com/content/2002/1/54.abstract N2 - Moving assets from one investment manager to another is a task all institutional investors face from time to time. It is a process involving many moving parts and several external firms (money managers, custodian banks, consultants, etc.) with large volumes of transactions. Recent years have seen a surge of transition providers offering solutions for funds. This article focuses on measuring the costs of transitions in terms of investment performance over recent years and comparing these performance results to the “pre-transition” estimates provided by providers. Findings demonstrate that performance results are substantially below what pre-transition estimates suggest they should be. The article continues on to suggest reasons for why this “negative performance surprise” is occurring and what fund fiduciaries can do to better deal with transition situations. ER -