Defining Qualities of Managers
We aim to assist our clients across various investment strategies and at various stages of their life-cycle. In general, we look at the following characteristics of managers:
Manager Background:the quality of the manager is the most critical criterion in the fund selection process. We will review a prospective client's investment experience, track record, network of relationships, overall reputation, and individual "intangibles" that can often impact the success of the fund and the marketing process.
Commitment to Building a Quality Infrastructure and Operation: such as an adequate financial system, risk controls and an on-going emphasis on state-of-the-art technology.
Commitment to Building a Team: the most successful fund leaders are often those who are prepared to build a team. This includes an investment complex complete with researchers, deal sourcing and traders, a back-office team of financial, legal and technology professionals that include a CFO, controller, risk officer, head of compliance and IT expert.
Investment Strategy and Investment Disciplines: we review the deployment of the actual investment strategy to see how results are achieved. We evaluate the category into which the strategy fits, the manager's risk management process and level of sophistication and how the fund is structured including an analysis of management fees and liquidity concerns.
Record of Returns: Performance is the ultimate standard by which a fund company will be evaluated. Assuming an investor's perspective, we look at the manager's ability to deliver positive returns, their record of major drawdowns and the level of volatility the fund incurs. The suitability of the return profile must be ascertained before going forward.