Draft picks are destiny's children


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There are so many examples of teams making the wrong choice between players that it almost does not even qualify as a legitimate debate to use hindsight to evaluate the draft order of players in the NBA. With that being said, basketball fans in Portland should at least consider the possibility that their team made a mistake in selecting Greg Oden over Kevin Durant.

The two players are forever linked because they were in the same NBA draft year. Oden was the incumbent star of his draft year, while Durant came out of nowhere to be one of the top players in the NCAA in 2006-07. While Oden had dealt with agents trying to secure his services over the course of both his high school and college run, Durant was seemingly under the radar. In years previous, there have been other examples of how teams passed on one player to draft another, only to see over the course of time that they made a selection mistake.

Perhaps the most famous drafting mistake was the decision by the Portland Trail Blazers to pick the 7ft 1in Sam Bowie over Michael Jordan in the 1984 draft. Bowie had put together an impressive collegiate career at the University of Kentucky before entering the draft. He was also very tall. Jordan had put together a decent collegiate career before he entered the draft, however he was no giant of a man. He was a pedestrian 6ft 6in.

In short, it was a great deal safer for the Blazers to go with the established height as a player who needed the ball to be effective. We all know now that Portland made a big mistake by passing on Jordan. The 2007 draft was almost déjà vu. Oden was the can't-miss-kid. Watching the 7ft Oden star for the Ohio State University basketball team, it was clear that he was a cut above the rest. With such great expectations, it is only obvious that Oden has not lived up to what others proclaimed to be his potential.

In hindsight, he has been a big miss since he entered the league. A combination of less-than-stellar play as well as continual injuries has made Oden a bit of a question mark. He has not shown that he has the inherent skills to someday become an incredible basketball player. Years ago, during a successful run as the top executive of the New York Knicks, Ernie Grunfeld told a colleague of mine that evaluating players was like trying to capture lightening in a bottle. The point was well taken. With few exceptions, there are no sure things in life, not the least of which are the future behaviour of human beings. Very few people were willing to put Durant over Oden before the two entered the NBA.

A few weeks ago, I had the chance to speak with former NBA general manager Wayne Embry, a senior executive with the Toronto Raptors. Embry claimed that the best teams were built from the centre position outwards. I am sure that he too, even with his Hall-of-Fame accolades, would have selected Oden with the first pick. In short, on paper perhaps, Oden was a better prospect than Durant. In many ways, the former Seattle Sonics were lucky that they did not have to decide between the two players but rather select the guy that Portland had passed on. I would not be surprised to find out that the Sonics would have taken Oden had they had the first pick.

The best part about the story of Oden and Durant is that they are well-known for being great guys. While it would be nice to see Oden healthy so that we could enjoy both players over the years to come, meanwhile Durant continues to show why he is one of the future stars of the game, inspiring questions as to whether Portland made a mistake. gdole@thenational.ae

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid