Performance and Characteristics
Understanding Portfolio
Construction & Monitoring
What we look for...
- Below-average fees
- Above average reward/risk characteristics such as Sharpe ratio and performance relative to peers
- Manager tenure is important
- Asset size is important – we don’t want to be a large enough fraction of the fund’s total assets under management that we are unable to liquidate if the need arises.
- Minimal style drift – when we invest in a large cap growth fund we don’t want to discover several months later that its portfolio has changed so that now it is acting like a mid cap value fund.
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