• Kevin Burrows

Manager Selection

“An in-favour style, slick marketing presentation and an articulate fund manager can easily create the illusion of true skill. Therefore proper due diligence is a crucial component of manager selection.”


Principles

  • Good managers exist but are rare

  • Beating the market is difficult, especially over short term; therefore judge managers over a full market cycle

  • Sometimes investing for market exposure i.e. “passive beta” is more appropriate than searching for manager skill i.e. “active alpha”

  • Investment philosophy and process of manager must be understood and believed in

  • Stability and strength of fund manager/team is important

  • Access to fund manager/team is crucial – No hidden ‘Bernie Madoff’s

  • Alignment of interests / stewards of capital

  • Size is a consideration – in some markets being small and nimble is an advantage

  • Separate operational due diligence process

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Investment Pillars

1) Long term Investing Outperformance requires a long-term outlook with continuous adjustments to the portfolio Compounding is a powerful force: reasonable returns compounded over long periods can pro

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