Investment Management - Stock Picking Hit Rate
I work at a boutique investment management firm. I am an analyst on a small team, so I get to work closely with the portfolio manager. I joined a couple years ago, and certain trends are starting to emerge and I am not sure how to handle the situation. I don't pitch stocks as frequently as the other analysts on the team, but the ones I do recommend have a hit rate of like 80% and my ideas have been up like 20% since I pitched them.
But a lot of my ideas get sold because they go down a little bit in the meantime. My thought is that markets are crazy and stocks will go up and down. But my team ends up selling them because they freak out. Or, some stocks aren't even bought because another analytst, who is more senior to me and super vocal/loud, keeps pushing his ideas into the portfolio. Funny thing is that we're supposed to be a fundamental bottoms-up manager, but the team freaks out pretty frequently over technicals and sells -- or buys on technicals.
I have kept track of all my recommendations and how they've performed. But I don't know how to bring this up with my PM. I don't want him to think I am being cocky or criticisizing his decisions. At the same time, though, I don't want to be perceived as someone who doesn't produce enough quality ideas. Any thoughts?