Sat, Feb 22, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
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......................

To view our full article please login

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

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. PE/VC: Venture debt: Is it a loan? Is it equity? Is it an pportunity?, PE, VC investments in India hit all-time high in 2019[more]

    Venture debt: Is it a loan? Is it equity? Is it an pportunity? From Forbes: Venture Capital is usually the default option for fast-growth startups looking for a cash injection, thanks to our willingness to take risks in return for equity, and with no need to pay anything back - at least

  2. Other Voices: Evolution of shrinking hedge fund fees - what do investors and managers need to know?[more]

    By Don Steinbrugge, Founder and CEO, Agecroft Partners (DonSteinbrugge@agecroftpartners.com): Hedge funds fees remain under extreme pressure across the industry. This strong trend is driven by declining return expectations from investors, inc

  3. COVID-19: Investors track ships, chase rumours to get edge on COVID-19 risks, Coronavirus risk puts the bull run on pause, China was wise to let markets stumble[more]

    Investors track ships, chase rumours to get edge on COVID-19 risks From Reuters: As investors crunch numbers to determine how the coronavirus will hit China's economy, hedge fund manager Nathaniel Polachek has tied much of his outlook to the fate of a ship anchored near Weihai, China.

  4. Bruce Berkowitz is back!, Coatue's new quant fund lost money in the fourth quarter[more]

    Bruce Berkowitz is back! From Institutional Investor: Famed value investor Bruce Berkowitz has hit hard times over the past decade, with big bets on losers like Eddie Lampert's Sears Holdings. In fact, over the past 10 years, his Fairholme Fund's annualized return is only 4.89 percent -

  5. Are all ESG Indexes as green as you want them to be?[more]

    From Beyond Investing: When Laurence Fink, chief executive of BlackRock, with nearly US$7 trillion under management, vows to put sustainability at the core of the firm's new investment approach, markets and investors sit up and liste