What characteristics do all good PMs and Fund managers have?
I know hard work is an obvious one for but maybe something less obvious like attention to detail critical thinking eg
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This might not be the answer you're looking for, per se, but I've noticed good PM's can speak knowledgeably to just about anything going on in the world at any given time. Not to say that they are experts at any particular thing besides the industry they work in, but they always seem well-versed in other aspects of business/economy/politics/anything that can affect their business. Think of it as a more macro view of the world. At least that's been my experience.
Basically being informed with political and mostly the business world is a big part of being a good pm?
In my experience it's been the ability to absorb, retain and express the implications of large amounts of information.
I gave my answer here on this thread: http://www.wallstreetoasis.com/forums/how-much-of-this-industry-is-luck…
Here's my answer:
Technically sound: Good portfolio managers have a strong foundation in analytical finance and understand the ins-and-outs of the companies they own.
Natural decision makers: Investing involves making decisions around the clock, and a lot of times you are acting with uncertainty. Good portfolio managers can make decisions and make them naturally, because the worst case scenario in a lot of situations is to do nothing while the market and companies are changing.
Emotional stability: Portfolio managers need to stomach the market volatility and act rationally. You’ve heard that a lot of investing is about having discipline. High emotional stability is required in having the discipline to hold onto your positions when they are not going well, because you have high conviction in your thesis. Warren Buffett is famous for ranking high in emotional stability.
Marketing: On top of having good performance, a good portfolio manager need to market his strategy effectively to raise assets. This is often overlooked as a key trait in building a successful fund.
A lot of these qualities are not only in good PMs, but also in good analysts who eventually become PMs.
Kelvin
This is good: https://doc.research-and-analytics.csfb.com/docView?format=PDF&source_i…
They beat the market.
That's deep :)...
Discipline and Humility, not just strong technical skills.
All the technical skills in the world mean nothing if you get overly emotional. You chase prices when they run away from you, you panic when they fall, you drift away from your strategy. Undisciplined managers take increasingly more risk when they're down and sometimes start lying to themsleves and/or their team about why they're still invested in a position, or hold on to them way longer than they should. Clients will forgive underperformance due to a bad call because even the best of us get it wrong, but they will never ever forgive intellectual dishonesty and rash decisions. I left my old firm (when I was still working as a buy-side equities analyst) because of an issue like this, because my immediate boss, who was a PM, started to force me to manipulate my models and write misleading research to justify his calls. Had he listened to the research and let go of "high conviction" calls which were going bad, the fund wouldn't have underperformed like it did because there were some winners which were home runs, honestly. You will get things wrong, that's a fact. Seth Klarman said in one video that Value Investing is having both the confidence to say that the market is wrong on something, but also the humility to admit when you are and the market moves against you.
Love you profile pic. You a blue bottle fan?
Yes definitely. It looks like being particular about coffee is starting to become a requirement in venture capital lol
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