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Boutique PM sets €1m charity prize in active-passive duel

Boutique PM sets €1m charity prize in active-passive duel

German fund of funds manager Eckhard Sauren has challenged any passive fund manager to beat his performance over the next decade with a €1 million ($1.2 million) charitable donation at stake.

Sauren, who founded his eponymous investment firm back in 1991, has already spoken to members of the passive community about finding a suitable opponent for his strategy. There have been no takers as yet.

He pointed to his Sauren Global Growth fund, which he said has an annual performance of 2% after fees and it has also defended in down markets.

Sauren, one of Germany's most recognised investors, is known for being one of the country's first fund of funds managers, with his flagship Sauren Global Defensive fund controlling some €1 billion in assets under management.

Sauren said his ideal competitor would be comparable to a balanced fund, which would have equal weighting to global and European equities, German bonds and corporate credit.

The winner would be the strategy with the highest return after fees over a 10-year timeframe. The losing party would then donate €1 million to a charity of the victor’s choosing.

Backing winners

This is not the first high profile fund manager-related wager in recent memory. Multi-manager Lee Freeman-Shor issued an open challenge to chief investment officers saying he could teach a child to outperform a professional investor with one year’s coaching. No CIO responded to the challenge.

Are you a passive manager keen to take up the challenge? Contact our sister publication Citywire Selector and we can put you in touch with Sauren.

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