He meant that a manager’s value-added (Information Ratio) was a function of his selection skill (Information Coefficient) and the number opportunities (N) he had. In other words, no skill = no value-add and no opportunity = no value-added.
During the holiday season the markets are thin and small trades can create a lot of price movements. In this environment I have no skill and little opportunity to add value. Blogging will therefore be very light and I will back in the New Year.
Happy Holidays and Happy 2008!