How to choose between good and bad Investment Managers

An investment manager can be defined as a person that oversees a large sum of money aggregated from various clients and hereafter allocated into different investments. This definition is though depended on the type of manager, as an investment manager also can be an advisor for others companies to find out what to invest in etc.

Overall for an investment manager, there exist the 3 P’s, that are used to describe the reasons why the manager is able to produce great results within his role. Are you looking for an investment manager, you can use the 3 P’s to find the right candidate for the job (3 P’s = Philosophy, Process, People)

The first P, Philosophy, refers to the overarching beliefs of the overall investment organization. Does the manager for example buy either growth or value shares – or rather a combination of the two, and why? The second P, Process, refers to the way in which an overall philosophy is implemented. What does the manager for example choose to buy and sell, and why? The third and last P, People, refers to the actual staff and especially fund managers. Some of the questions within this area concerns who they are, how they are selected etc.

The above mentioned investment management solutions to choose the good managers from the bad, will only be one option for a company to handle investments. Several suppliers have also developed software to handle this for companies. Being more automated and transparent, a developed system will also delimit human errors and deliver perfect results, every time!

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