Jump to content

Evaluating investment managers


Recommended Posts

I am assuming you want high risk adjusted performance.  If so, then I would look at how they value companies and how comfortable they are in concentrating positions.  The only way to outperform is be different and of the manager is reluctant to be different then what is the point.  The more diversified they are the less likely they are going to out perform enough to pay their fees.  Another way to increase concentration is via LEAPs and warrants.  If you require diversification, then I would use value tilted index funds to keep the fees down.  Does the managers circle of competence include a number of sectors/industries?  What has been the managers biggest mistake and how did they fix it going forward? Finally, you can look at performance numbers.  Another approach that probably requires less research is but into owner operators discussed on this board as they are doing the same thing as mutual funds. 



Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...