@article {Jovellanos40, author = {Chito Jovellanos}, title = {The Impact of Investment Operations on Portfolio Performance}, volume = {20}, number = {3}, pages = {40--52}, year = {2011}, doi = {10.3905/joi.2011.20.3.040}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This research summarizes intriguing evidence on the impact of an asset manager{\textquoteright}s overall investment operations on individual portfolio performance. This exploratory analysis of operational data associated with 61 institutional portfolios across 14 managers (over the October 1999{\textendash}August 2009 period) suggests that robust investment operations can mitigate potential outflows of excess return within a portfolio ranging from 51{\textendash}242 basis points (relative to the benchmark and gross of fees). The dissipation of returns stems from implementation shortfalls associated with a broad spectrum of activities performed within investment operations. The author{\textquoteright}s inquiry was motivated by the insufficiency of existing approaches that evaluate {\textquotedblleft}ops{\textquotedblright} simply through the lens of expenses, workflows, and best-practices adoption while ignoring the more central question of how overall operational efficiency contributes directly to performance of the firm{\textquoteright}s portfolios.TOPICS: Real assets/alternative investments/private equity, mutual funds/passive investing/indexing, portfolio construction}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/20/3/40}, eprint = {https://joi.pm-research.com/content/20/3/40.full.pdf}, journal = {The Journal of Investing} }