Multi-manager investment: Difference between revisions

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Multi-manager investment is an investment product that consists of multiple specialized funds. Each specialized fund may invest across different sectors and markets, or having managers investing in the same asset class but have different investment styles. For example, large cap value fund versus large cap growth fund.

This theory is founded on the premise that not all investment managers are good in all markets and that not all managers are successful at all times. Spreading the investment money across different asset class or markets allows the investor to achieve the necessary diversification, reduces risk without sacrificing the return.

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-The concept of '''multi-manager investment''' is based upon the theory that not only should an investor diversify between individual securities, but they should diversify between different [[investment manager]]s.
+'''Multi-manager investment'''  is an investment product that consists of multiple specialized funds. Each specialized fund may invest across different sectors and markets, or having managers investing in the same asset class but have different investment styles.  For example, large cap value fund versus large cap growth fund.
+This theory is founded on the premise that not all [[investment manager]]s are good in all markets and that not all managers are successful at all times. Spreading the investment money across different asset class or markets allows the investor to achieve the necessary diversification, reduces risk without sacrificing the return.
-This theory is founded on the premise that not all managers can be good in all markets and that not all managers are successful at all times.  By selecting a range of managers the investor can lower risk that poor performance by any one manager will have an adverse effect.
 ==See also==