If you are a new fund manager, what type of investor should you look for?
There are so many different types of investors out there, each with different needs and constituencies. You can’t have a one-size fits all investment strategy for clients. You should have a one-size fits all strategy for yourself as a manager. Know what you think is the optimal investment strategy.
We are typically asking our managers to have 90% or more of their net worth in their strategy. They better believe that a portfolio of 10 tech stocks, or 20 consumer stocks, or a 100 stocks across multiple industries is the best investment approach for them. I can guarantee you there is an audience for all three of those portfolios, but it won’t be the same investor.
Too often I see managers who are clearly trying to position their portfolio for “institutional investors” without realizing that it’s a wide space. Appealing to the lowest common denominator is a terrible business decision.
UCLA turned one hundred this year.
You can read about the light show on Royce Hall celebrating their centennial.
Post by Marcelino Pantoja