Posts filed under “Mutual Funds”

Portfolio Managers vs. Portfolio Management

This morning’s must read comes from Ben Carlson, who coincidentally runs our institutional practice. In a longer analysis, Ben dives deep into the differences between managers and management.

The differences are simultaneously nuanced yet pronounced:

Portfolio Managers:

  • The ability to process investment ideas from a number of different sources.
  • Attention to detail.
  • Knowing when to admit that you’re wrong and made a mistake.
  • Being flexible in your views on the markets.
  • Understanding where your competitive advantage lies.
  • Having a quick filter for poor ideas.
  • Being passionate about the markets.
  • Conviction in your best ideas.
  • Knowing how to manage risk (position sizing, trading strategies, when to buy/sell, etc.).
  • The ability to sell and explain your process to others.
  • Patience.
  • The correct temperament.

Portfolio Management:

  • Intellectual honesty.
  • The ability to understand a number of different investment philosophies.
  • The capacity to work with many different personalities and, more importantly, judge a person’s character.
  • A broad understanding of how the different asset classes and strategies generally work and interact with one another.
  • A thirst for knowledge (there’s a lot of reading involved).
  • The ability to effectively communicate and define your overarching philosophy and strategy.
  • An understanding of the difference between being stubborn and following a disciplined investment process.
  • Knowing when to make portfolio changes and when to do nothing.
  • The ability to manage risk.
  • Control over your emotions.



The Difference Between a Portfolio Manager & Portfolio Management
Ben Carlson
Wealth of Common Sense, October 20, 2015

Category: Asset Allocation, Hedge Funds, Inflation, Mutual Funds

A Question of Liquidity

Source: WSJ

Category: Fixed Income/Interest Rates, Mutual Funds

401Ks Should Not be Complicated or Expensive

Over the years, I have been critical of the way 401(k)s are created, administered and managed. They can be expensive and filled with underperforming actively managed funds, some of which charge way too much. Some retirement plans offer too little diversification, especially in international and emerging-market sectors. I have also noted that you, the individual investor,…Read More

Category: 401(k), Investing, Mutual Funds

Funds in Morningstar’s 401(k)

click through for full article Source: Morningstar

Category: 401(k), Corporate Management, Investing, Mutual Funds

RWM Announces Institutional Asset Management

Two years ago, we launched RWM. Our mission was to provide high quality wealth planning and asset management to our clients, be a force for teaching the public the right way to invest, and point out the shortcomings of our industry. The cost structure, the excess activity, the reliance on complexity and a misleading sales…Read More

Category: Asset Allocation, Hedge Funds, Mutual Funds

What Happens When A Star Fund Manager Leave?

How the mighty have fallen. Earlier this month, the once towering Total Return Fund of Pacific Investment Management Co. hit a milestone. Mary Childs of Bloomberg News observed that Pimco’s “flagship fund fell below $100 billion in assets for the first time in more than eight years, leaving it with about a third of the money it…Read More

Category: Corporate Management, Fixed Income/Interest Rates, Hedge Funds, Mutual Funds

Are Mutual Fund Managers Skilled?

  Jonathan Berk turns the efficient market hypothesis, which popularized the belief that mutual fund managers were “monkey investors” who consistently perform worse than the overall market, on its head to prove that mutual fund managers are in fact highly skilled investors. And he proposes a new way to accurately measure a mutual fund manager’s…Read More

Category: Investing, Mutual Funds, Really, really bad calls

Fool-proof Logic

Source: Washington Post

Category: Hedge Funds, Mutual Funds, Really, really bad calls

I wanted to spend a bit of time on the Labor Department’s proposal to place a fiduciary obligation on those who manage or provide investment advice on retirement plans. These include individual retirement accounts and 401(k)s (including 403(b)s). The new rules require the broker or adviser to “operate in the best interest of the client.” I don’t…Read More

Category: Index/ETFs, Investing, Mutual Funds, Really, really bad calls

Bill Gross Defends His Record

Last year was a time of change and controversy for Bill Gross: His unplanned exit from Pacific Investment Management Co. in September, a whisper campaign before the palace coup, a new job at Janus Capital. Amid all this, Gross is most upset about one thing: Despite 40 years at the top of the fixed-income world,…Read More

Category: Fixed Income/Interest Rates, Investing, Mutual Funds