Finding a winning stock may be easy for some. However, recognising that it is a winner, and having the conviction to run it, is considerably more difficult for all but the most skillful. This paper demonstrates that skill exists, introduces a way to identify it, and shows that there is almost 500 bps pa difference between the performance of Managers who have skill, and those that do not.

Over the years, Inalytics has developed a clear sense of what characterises investment skill and a set of metrics to capture it. This paper analyses a cross section of the Managers used by UK Local Authorities.