Source: ET BB
The ET Big Bucks series on top global investment experts brings to you Jeremy Grantham, the chairman and chief strategist of Grantham, Mayo and Van Otterloo or GMO for short.
If you are a retail investor who likes reading about investment gurus, you better read this. Jeremy Grantham is right up there in the top league of Wall Street legends.
His firm, GMO, manages around $120bn of assets — twice the size of the entire Indian mutual fund industry. GMO is bullish on emerging markets. Its Emerging Market Fund has around $19bn in assets, making it amongst the biggest players in emerging markets.
GMO has a diversified mix of products and targets various assets classes: equities (US, global, emerging markets) bonds, currencies and even timber. It offers plain-vanilla funds and a whole range of hedge funds.
It has a decent track record, outperforming benchmark indices in many of its funds. One strategist doesn’t get to run more than $100bn without a solid track record, and an extremely keen eye on the future.
Jeremy Grantham goes to extreme lengths to see the future. In February ’06, for example, GMO released a seven-year forecast of expected returns from various asset classes. These asset classes comprise just about the entire investment universe for most investors.
Try to get the enormity of it, this man has a seven-year view on all possible asset classes. Phew! This view apparently comes from a huge exercise. GMO surveyed around some 2000 experts as part of the exercise.
ET Intelligence Group analysts Muthukumar K and Ajay Jindal spoke to Mr Grantham to get his views on future returns. His views aren’t rosy at the moment. Read on to find out more:
Click here for the complete interview.