PT - JOURNAL ARTICLE AU - Robert Werner TI - Slouching Trader—Hidden Drag on Performance DP - 2002 Mar 20 TA - Trading PG - 54--58 VI - 2002 IP - 1 4099 - http://guides.pm-research.com/content/2002/1/54.short 4100 - http://guides.pm-research.com/content/2002/1/54.full AB - 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.