The Return of the Portfolio Manager

The best performing investments since the recovery from the 2008 crash have clearly been index funds.  These unmanaged portfolios, aided by low fees have, with few exceptions, provided better returns than the traditional funds.  As the economy has recovered, the market followed with large advances in most sectors. A rising tide was lifting all boats.

This has resulted in very rich valuations that we believe may be unsustainable. Going forward it appears to us that a portfolio manager with a broad license to invest in his/her best ideas may provide the best option going forward.

We will be investing with mangers who have the freedom to invest anywhere in the world; utilizing stocks, bonds or cash without the conventional restraints that restrict allocations to prescribed formulas.

Our role is to identify competent mangers who will more than offset the inevitable increase in costs by their skill in choosing the right investments.  Of course, it is never all index funds or managed portfolios but trying to find the right balance for the times.