Bill Gross is not the always affable, mild-mannered, yoga practitioner we have been led to believe he is. He is demanding of his staff, prone to hyper-criticism and a bit of a tyrant. Who would have expected that the King of Bonds was driven by a big ego and a tinge of nastiness?
I am ruining what was my favorite neighborhood restaurant. I saw one of you there the other night (dear reader) and, although I am happy you had an enjoyable meal, I wish I hadn’t told you or, frankly, anyone else about it.
From a rigid framework driven by investor demands for strict style adherence, asset managers are enjoying expanding freedoms in managing investment strategies. After a twenty-five year period of intermediaries constricting active managers’ discretion and forcing narrower and narrower parameters in the name of style purity, the grip of style-box logic is slowly loosening.
The word talent, like the word love, is used with far too much frequency. There really are very few talented people in the world – in the investment world, I am convinced that they are even rarer.
When choosing managers or funds, there is a growing gap between what selectors say and what they do. Their rhetoric covers four ‘Ps’: philosophy, process, people and performance. But their practices too often focus on past performance
One of the biggest killers of good asset management companies is too much money flowing into too few products too quickly. Blockbusters can both make and break asset managers.
Many professional investors will not consider investing in a fund until they ‘see the whites of the portfolio manager’s eyes’ and ‘press the flesh’. Despite all the technological advances that have made remote communication seamless, it is as important as ever to meet in person.