OCIOs must play the hand their client dealt. But client circumstances vary widely and affect hand quality. Some OCIOs get to play starting hands dealt from decks rich in aces, and some OCIOs are dealt starting hands from "the muck" (discard pile.)
In a single hand of poker, players can lose being dealt "pocket rockets" (2 Aces) or win with 8-6 off-suit. In a tournament, an above-average frequency of above-average starting hands can send even the weakest players to the final table. Starting hand quality matters!
In poker, starting hand streaks happen creating "a rush" or being "card dead." For OCIOs, systemic client circumstances create lasting streaks. So, to know how good your OCIO truly is, you must evaluate how they play their hands, not what they are dealt.
The Big Question: How much of a client's return is due to systemic client circumstances and how much is OCIO skill? Simplistically comparing client returns conflates/confuses the two by lumping them together.
Just consider the following client circumstances that affect investment strategy and returns, but have nothing to do with an OCIO's skills:
Plan Type (Pension, HNW, Family Office, E&F)
Plan Size (AUM)
Return Objective
Risk Tolerance
Liquidity Needs
Fee Constraints
Cash Flows
Funding Status
Growing/Shrinking/Frozen
Allowed Assets, Targets & Ranges
Legacy Assets
Use of Leverage & Derivatives
Illiquid Asset Limitations
Client Sophistication
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