The three P’s of Investment Management are philosophy, process, and people. For example, a philosophy may be to buy growth shares, value stocks, or a combination of both. A process could be to work with a team of researchers or believe in market timing. Regardless of the method, the philosophy should be backed by a proof-statement. A good investment management firm should be able to explain how it works and why it does it.
There are several different styles of fund management that can be implemented by institutional investors. These include growth at a reasonable price, value, market neutral, small cap, indexed, and other styles. Each has its own characteristics, adherents, and risks. Value and growth styles tend to outperform indices and are effective for securing capital in scarce companies. However, both have their disadvantages. As a result, both styles should be considered carefully and used only when they are appropriate for a particular situation.
An investment manager is a professional who is responsible for managing a client’s portfolio. They devise investment strategies that are best for the client’s goals and risk tolerance. These professionals also buy and sell investments on the client’s behalf and monitor their performance. Investment management firms also handle accounting, business development, marketing, and IT. If you’re considering hiring an investment manager, keep these tips in mind. These strategies can make a world of difference.
