Consequently, fund pickers are required to be extremely flexible in their approach and able to assess each manager on his own merits.
Successful fund pickers typically look for the presence of certain key characteristics when seeking managers with whom to entrust their clients’ capital.
In order to be relevant to the fund selection process, these characteristics must be based on sound investment principles and have predictive value.
The latter is especially important as it distinguishes funds that can improve the performance of a real portfolio rather than simply providing an attractive back test.
Here Dan Kemp, partner at Abermarle Street Partnership and former manager of the Saltus multi-manager portfolios, details the five characteristics he looks for in a fund manager and reveals those who have them.