Multi-manager investment

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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 classes or markets allows the investor to achieve the necessary diversification, reducing risk without sacrificing the return.

Arbitrage / relative value	Capital structure arbitrage Convertible arbitrage Equity market neutral Fixed income arbitrage / fixed-income relative-value investing Statistical arbitrage Volatility arbitrage
Event-driven	Shareholder activism Distressed securities Risk arbitrage Special situation
Directional	Convergence trade Commodity trading advisors / managed futures account Dedicated short Global macro Long/short equity Trend following
Other	Fund of hedge funds / Multi-manager

Trading

Related
terms

Markets	Commodities Derivatives Equity Fixed income Foreign exchange Money markets Structured securities
Misc	Absolute return Arbitrage pricing theory Assets under management Black–Scholes model (Greeks: delta neutral) Capital asset pricing model (alpha / beta / security characteristic line) Fundamental analysis Hedge Securitization Short Taxation of private equity and hedge funds Technical analysis

Investors

Governance

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See also