Characteristics of a good Portfolio Manager

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SerGrey's picture

Hi,

May anybody help me to find the topic on hints how to choose a good Portfolio manager?I am sure I saw it last year in Schweser books, but can’t find now.

Thanks in advance!

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Shrute Farms's picture

Anyone not named Madoff.

Hello Mister Walrus's picture

Generally, it’s the one that takes you to the best restaurant and/or baseball game.

crablegs's picture

Most funds fact sheets come with a picture. That says it all. If the guy looks like James Bond, he’s got to be really good and generate some solid alpha. If on the other hand he looks like Screech, then he will probably underperform.

Sorry… that was stupid…. I do recall something like that as well, but can’t remember now. Too much rum since I found out I passed. Can’t remember a thing.

pupdawg82's picture

It was in Alt Investment section -

His Education, past records (where did he work and as what), his track record (as an analyst/associate/trader before becoming a PM), background check (is he clean with regulatory agencies like FINRA, SEC etc?), ask other investors of that fund about his performance, is he transparent about his strategies?

Basically you need to do your own due diligence before allowing anyone to manage your money especially for HF investments. In case of Mutual Fund - you basically go by reputation of the company, past performance of fund, strategy and fee but in HF nothing is open and one has to dig for information.

Hello Mister Walrus's picture

This kind of thing is actually on the exam? Hmm… things are starting to look up.

pupdawg82's picture

Hello Mister Walrus Wrote:
——————————————————-
> This kind of thing is actually on the exam? Hmm…
> things are starting to look up.

yes they had a SS on Alt Investment and one LOS was what characteristic you look in a HF manager

GoodXter's picture

2009 LOS 37b - Due Diligence Checkpoints Invloved in Selecting Active Managers of Alternative Investment

Schwesser’s 2009 BK4 Page 108 says something about this

Sponge_Bob_CFA's picture

Hello Mister Walrus Wrote:
——————————————————-
> This kind of thing is actually on the exam? Hmm…
> things are starting to look up.

The best description of LIII is: sucker punch.

pupdawg82's picture

Sorry I was referring from L2 curriculum. I am a L3 candidate.

punterguy's picture

It’s how his fund perform during bear time such as 2008 that determine how good a Portfolio Manager is. Nothing beats that.

pupdawg82's picture

I beat the market in 2008 by not buying any security. My return was 0% as compare to market which tanked 30%

SerGrey's picture

GoodXter Wrote:
——————————————————-
> 2009 LOS 37b - Due Diligence Checkpoints Invloved
> in Selecting Active Managers of Alternative
> Investment
>
> Schwesser’s 2009 BK4 Page 108 says something about
> this

Thanks a lot!
That is exactly what I was looking for! :)

pupdawg82's picture

SerGrey Wrote:
——————————————————-
> GoodXter Wrote:
> ————————————————–
> —–
> > 2009 LOS 37b - Due Diligence Checkpoints
> Invloved
> > in Selecting Active Managers of Alternative
> > Investment
> >
> > Schwesser’s 2009 BK4 Page 108 says something
> about
> > this
>
>
> Thanks a lot!
> That is exactly what I was looking for! :)

No thanks to me:)

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