Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Why Portfolio Managers Don't Want to Do "Macro"

The one thing that the average portfolio manager most hates doing is "macro"(eocnonmics). That;s because s/he doesn't see it has being central to his/her job, even though it is.

Most managers want to "delegate" the less pleasant tasks, and let others do them, while they concentrate on doing what they enjoy most. "Macro" is one of them. Let the Fed, or some other benevolent authority control the economy (preferably within fairly narrow limits. Our job is to exploit the opportunities that are created, without having to worry if they will be taken away from us.

But that is a wrong way of thinking. The "macro" economy is nothing more or less than the aggregated of what all the "micro" managers are doing. Most portfolio managers do competitive analysis to find out how they are stacking up, relative not only to the market, but to their peers. "Macro" analysis is really finding out where everyone else stands, and figuring out where you want to stand, relative to the herd.

"Audit" is another function that portfolio managers have wrongly delegated to others. Most managers are more concerned about how reported numbers impact their portfolios than whether such reports are accurate. Corporate managements have "picked up" on this by telling the buy side what they want to hear. In all too many cases, the "spin" is greater than the story.