BALTIMORE, Oct 12 (Reuters) – Facing a period of low returns, the vice chairman of money manager T. Rowe Price Group Inc. (TROW.O: Quote, Profile, Research) warned institutional clients on Wednesday to avoid investment fads in the quest for better performance.
In a speech at the company’s annual investment symposium, Jim Riepe said the rush to invest in hedge funds, an industry that now manages $1 trillion in assets, shows signs of irrational investing, he said.
“I would caution investors from becoming overreliant on strategies that are characterized by short-term focus, very high fees, limited liquidity and for many, lack of any meaningful performance track record,” he said.
