Posts filed under “Mutual Funds”
The differences are simultaneously nuanced yet pronounced:
- 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.
- The correct temperament.
- 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
Wealth of Common Sense, October 20, 2015
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
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
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
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
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
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