Fund manager
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Fund managers are individuals or teams that implement the investment strategy and management style, usually active, of a pooled-capital fund. Active fund managers invest the capital of a mutual fund or hedge fund with the aim of beating the market benchmark but recent studies and events suggest the value fund managers claim to add may be exaggerated.
Princes or pooches
Fund managers, also called investment managers, can strongly influence a fund's performance over time and command powerful loyalty from investors if returns consistently outperform the index. They may be individuals, partners or teams of three of more and are paid fees representing a percentage of funds' assets under management.[1] Stock-picking geniuses like Peter Lynch of Fidelity's Magellan mutual fund and Warren Buffett of Berkshire Hathaway have gained legendary status among modern-day fund managers.
On the other hand, underperforming British fund managers may have insult added to injury if they make IFA Bestinvest's annual Spot the Dog award, which identifies investment groups with the market's most worst-performing funds.[2] This year several investment companies - including HSBC, Prudential, AXA and Threadneedle - took Spot the Dog awards for having more than one poorly-performing fund manager.
Latest news
Five different investment firms that managed a total of $1.82 billion in assets were recently dumped by the $50 billion Massachusetts state employees' pension fund PRIM because their fund managers were underperforming their benchmarks, the Chicago Tribune reported in August 2008.[3] Chicago-based Ariel Investments lost control of $246 million after PRIM terminated 11 of its active fund managers following three years of underperforming the Russell Midcap Value benchmark. Other managers terminated at the same time included Legg Mason, Mazama Capital Management and Gardner Lewis.
References
- ↑ Fund Manager. Investopedia - Forbes Digital.
- ↑ In the doghouse: Independent adviser collars five underperforming investment groups. The Guardian (UK).
- ↑ Big pension fund dumps Chicago manager. Chicago Tribune.
