Multi-management is a great investment style because you get the best of the very best. When I first started in the investment industry in 1990, there were a handful of investment managers, making it was very easy to pick the right one. Today there are hundreds of managers, with new managers joining the party every day, so how do you know which manager to pick?
Stringfellow Investment Specialists are multi-managers and we make your life easy, we pick the best managers for you and then we manage them. If the managers perform, we are happy but if they do not perform, we can replace them. Multi-managers manage the best managers on your behalf.
I strongly believe that you cannot beat multi-managers over the long term. It is impossible to beat the best of the very best in South Africa and the world!
The advantages of Multi-Management
Managers change and move, they are not static entities. A manager may have been good a few years ago but is he good today? What happens if the manager leaves the asset management company? What happens if the investment style of the asset management company is inappropriate for the current economic environment? Multi-managers manage all these issues for you.
If you want average returns then pick managers yourself, but if you want consistent superior returns over time, then pick a top multi-manager.
Investors love to say “don’t put all your eggs in one basket” but then they put all their money with one or two big name managers. Multi-managers are the ultimate diversifier. We offer the very best baskets the investment industry can offer.
If you want to put your money at risk, then pick managers yourself but if you want to reduce your risk and increase your returns then let a top multi-manager manage your risk. A good manager might be great at something but that does not mean he is good at everything all the time. It’s shocking that investors and brokers expect a good asset manager to always be great. He won’t be.
With the multi-manager model, a good manager can focus on what he is great at and other good managers will do the same. A great team will always outperform a great individual over time.
A top multi-manager will do a strict due diligence on all the managers available and will pick the best managers for you. A top multi-manager has access to research and information that an investor or broker does not have access to. Investors and brokers tend to pick the big well known asset managers. A top multi-manager has no bias and will pick the very best. The best asset managers are not always the biggest brands with the biggest marketing budgets.
Multi-Managers offer better performance and lower risk
The multi-management model is the most efficient and effective way to manage money. A top multi-manager reduces risk and increases returns over time. People say that is impossible, but look at the performance of top multi-managers.
Top multi-managers have been outperforming large asset managers over time and should continue to do so. How can one manager beat the best 10 managers in the country consistently over time? It’s impossible, even an unfair fight, the best of the very best will always beat the best.
It is time for top multi-managers to stand up and to take over. Single managers have been king for too long. The multi-management model cannot be beat if executed properly. Our time is now!