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New Managers October 2019

MARKETING CHALLENGE: We Versus Me: Identifying An Investment Mindset


When deciding where to put money, investors have many choices and multiple goals they are trying to achieve. Commonly, one seeks to partner with outside managers to enhance or increase the chances of meeting investment goals beyond what passive investing can deliver. Aside from the somewhat obvious objectives of asset allocation diversity and overall portfolio risk reduction are a myriad of other investment concerns that investors might have: time horizons, legacy planning, liquidity, and the like. Money managers can bring a higher level of skill, wider industry exposures, and sophisticated strategies that can assist in meeting some of these goals. But beside all the positive qualities embodied in investing with professional money managers is a caution to investors about the primary driver of investment decision-making: identifying whether or not the manager is a strong fiduciary. Does the manager have a singular or collective investment mindset, the ‘We' versus ‘Me' mentality, and how does that impact the management of other people's money? ‘AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST.' - Benjamin Franklin Franklin's advice is as wise today as it was in his time. Every investor has a first obligation to learn what they can about who they partner with in any investment sense. Managers who solicit 'OPM,' or other people's money, as a business activity will ideally have a 'We' mindset, one in which the manager equally weights investment action on behalf of personal and outside patners. What are some of the qualities that the 'We' mindset manager possesses? Here are five attributes that investors might look for when researching potential money management partners. 1. Someone who can make wise short- and longterm decisions. Managers need to be able to assess

their investment decisions on both time horizons, and balance both kinds for the sake of the right direction long-term. Sometimes this means making an i......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
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