Often, investors will discover a manager after he's had a terrific run, usually when he lands on a magazine cover somewhere. Invariably, funds swell up with new investor money just before they revert to their long-term averages.
People exaggerate their own skills. they are optimistic about their prospects and overconfident about their guesses, including which managers to pick.
Index funds eliminate the risks of individual stocks, market sectors, and manager selection. Only stock market risk remains.
To have strongly integrated managers who have a deep understanding of technology is a rare and difficult combination to build. You have to invest a lot in selecting and training these people.
We think the most important criteria for selecting an investment firm are the manager, team, and track record.
Manchester United was a club with great traditions, traditions where they tended to pick British managers. That tradition has now gone.
First, as an owner of the club, you must choose a style of football. After that, you must find the managers that will work with the young players in your team in that style. After that, you must put a manager in the squad with the same mentality.
Clubs need to take more ownership on how they recruit managers.
Fund investors are confident that they can easily select superior fund managers. They are wrong.
