- Choosing Only One Manager Savvy investors know they should diversify their portfolios. However, they may not realize that putting all their assets with a single money manager usually will not diversify them adequately. More
- Choosing Last Quarter’s Top Performer Investors who chase performance often end up buying high and selling low. What’s past is prologue. While performance is important, it is also history. It is important to ask: “Why was this manager a top performer last quarter?” Without careful analysis it can be difficult to separate the manager who finally got lucky once — after ten years in business — from the one who is consistently good and just turned in his best quarter ever. More
- Choosing Managers Without Setting Goals If you don’t know where you are going, how can you choose a path? The right money managers are a critical factor in your investing success, but they are means to an end. Without a clear definition of what success looks like, how can you decide which ones will take you where you want to go? More
- Failing To Monitor Your Managers Things change. The economy changes. The political environment changes. Your goals, needs and risk tolerance may change as you mature. Choosing a manager is just the beginning of a long term relationship. Your plan and your managers need to be monitored over time to be sure that they are still working for you. More
- Measuring Performance Against The S&P 500 When does beating the S&P 500 by 5% make a manager a poor performer? When the manager’s strategy is significantly different from the S&P 500 it might. One example would be if that manager ran an international portfolio in 2006. More
Five Mistakes To Avoid When Choosing a Money Manager