Sign up  |  Log in

Characteristics of a good Portfolio Manager

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!

Save 10% when you order a PremiumPlus or Premium Instruction Package by September 30, 2016.

Anyone not named Madoff.

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

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.

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.

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

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

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

Schwesser’s 2009 BK4 Page 108 says something about this

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.

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

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

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

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! :)

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:)