WHAT MAKES AN INVESTMENT MANAGER GOOD OR BAD

WHAT MAKES AN INVESTMENT MANAGER
GOOD OR BAD?


I. Introduction

What distinguishes the strong investment management organizations from the “also rans” and “only once rans”? Which are likely to be winners in the decade to come? In preparing this lesson, we drew upon the past seminars hosted by DLJ, seminars on managing the investment organization that were sponsored by the Institute of Chartered Analysts, and some literature and notes accumulated over the years. One obvious question is: What criteria should be used to make such a distinction? Business performance has not always been synonymous with investment performance. The number of successful businesses among investment organizations is fairly large after this long, glorious period of growth in financial assets. But a list of consistently successful, superior organizations, as nominated by investment professionals, would be fairly short, with many names mentioned repeatedly. We will use client retenti...