Manager style is not the only characteristic that matters

Myooran Mahalingam, CFA  |  MLC Investments  |  25 August 2021

Style matters when constructing portfolios, but there are other characteristics in a manager that are as important, if not more important, in generating consistent returns over the long term. These include a high active share coupled with good risk management, high idiosyncratic risk and a proven track record of picking the right stocks. A manager selection framework based on academic research and historical analysis is the means to the end – finding such managers and building portfolios capable of generating consistent returns over the long term.

 

 

Not yet a Member? It’s quick and free to join. Already a member? Please log in.