PMs - what differentiates the great from mediocre? Investment process discussion:
What do you believe sets apart the best performing analysts and PMs from the rest of the pack? I saw a comment on another thread about Fundamental Edge's training saying it was just fine/ pretty rudimentary, and it made me start to wonder about this topic, especially as I have limited insight.
More recently (from my limited and naive vantage point) it has been feeling like a lot of the basic steps to the investment processes are quite similar for the majority of L/S funds - understand the business intimately, you build your model, identify theof the stock, understand the embedded expectations, identify catalysts, etc. You find the best leading indicators for your business that you can, source differentiated views (not for the sake of it but objectively), and ideally you discover attractive risk/rewards. I am not underplaying the difficulty of doing this process efficiently and consistently, and the nature of the markets to operate in the gray space of uncertainties and beat you anyways, but I feel like Brett covers these basic steps quite well. So two part question:
1) What do you believe sets apart the best performing analysts and PMs from the rest of the pack? Is it time efficiency and the clairvoyance to nail down what matters? Wisdom in decision making and weighing tough calls? Consistency?
2) What other aspects of this job / the investment process are not often covered that needs to be highlighted? What topics should be covered that could make that training even more effective. I get that you may need to be somewhat familiar with Brett's course to make this call, and this is not to opine on the quality of his course, but for my own improvement, I want to understand with better nuance what processes and tools I may be missing when it comes to the basic investment process steps.