< The 2015 All-Europe Research Team
Spyros Mesomeris & team
Deutsche Bank
First-Place Appearances: 4
Total Appearances: 8
Team Debut: 1987
After a year in second place, Spyros Mesomeris and his seven-person Deutsche Bank squad recapture the top position they held in 2012 and 2013, earning buy-siders’ praise for providing “thoughtful and creative macro-oriented models that are unique and insightful,” in the words of one admirer. The researchers have been monitoring the increasing influence of so-called smart-beta strategies, which can be viewed as either a challenge or an opportunity for traditional, active quantitative asset managers, says Mesomeris, 39. He and his London-based colleagues are helping investors seize the moment. Since index providers and passive fund managers are offering their own smart-beta products, he notes, the active quant managers “have to think about showcasing to their clients how their investment approach differs from those smart-beta products that are out on the market,” which includes demonstrating that their own active product is better and justifies the fees they charge. At the same time, the growth of the smart-beta industry and institutional investors’ increasing comfort with systematic investing provide a chance for active quant managers to “jump on that bandwagon and take the opportunity to open dialogue with asset owners,” he adds. The Deutsche strategists also recommend that clients focus on more diligent portfolio construction, as well as working to position portfolios to benefit from low energy prices and weak inflation in Europe. “It’s also worth thinking about the effect of rising rates, which is likely to become a theme over the next few years,” Mesomeris remarks. “For this reason understanding corporate debt restructuring and refinancing needs should be a research focus from 2015 onward.”