I’ve never met an American who doesn’t like at least one
kind of pie. So many delicious crusts, cream fillings and meringues to choose
from; but for me a pie is all about the fruit filling. Apples, peaches,
cherries, blueberries, blackberries and any other delicious fruit that can be
stuffed into a pie all have their seasons and climates in which they thrive and
produce the best results for pie. Unfortunately, I have not discovered a year
round, all season, and all climate fruit that makes a delicious pie. I’ve often
thought about creating a “Frankenpie” with a different fruit in each slice but
I imagine the results wouldn’t match the dream. I’m sure they don’t call it
“Frankenpie” but the primary mutual fund company we work with applies this
approach to portfolio management. During a recent meeting with the portfolio
manager, he described how the company slices up management of their funds
between 3 to 12 different managers per fund. These managers are responsible for
their own slices and manage them based on their own style, experiences,
convictions, strengths and weaknesses. The result is portfolios that are as
naturally diversified as any group of individuals would be and structured to be
complementary so that one manager’s weakness in a given investment climate is
countered to some extent by another manager’s strength in that same climate.
Over time, this approach provides a fund the ability to generate more stable returns
in an ever-changing market place. This portfolio management theory is in
essence management for all seasons.
www.selahfs.com
www.selahfs.com
