Benefits to an Investment Manager
- The type of comprehensive investment approach discussed in this blog can help an investment firm make good decisions and create good performance, thereby gaining new clients.
- By having well-designed research processes and procedures in place, we can work efficiently, analyze market developments, and draw investment conclusions in a meaningful way.
- We can cut through the information overload, and zero in on what stocks and ETFs should be bought and sold.
- On a weekly basis, this process can provide a team of portfolio managers with a complete review of the markets, along with investment conclusions for managing client portfolios:
- Any changes that should be made to asset allocation.
- Any changes that should be made to sector weights.
- Specific stocks and ETFs that should be bought or sold.
- Note: a weekly market review does not imply excessive trading or high turnover. In many cases, the conclusion from the weekly review would be that no action is necessary. But occasionally there will be a significant change in market conditions, and this process will enable us to assess these situations and make appropriate changes in portfolios.
As seen from some of the articles on this blog, investment strategy does not require a Ph.D. in economics or statistics. It does not require a large research department. It can be done with a few good software packages and databases, many of which have a very reasonable cost.