Putting Our Managers To The Test

The nice thing about this time of year is that I get a chance to spend more time than usual doing a complete review and evaluation of all our investment managers. I spent most of Wednesday combing through hundreds of managers on our “short lists,” evaluating and comparing them with the managers on our “very, very, short list.”  

Since we are a “fee-only” investment manager, we have no bias in our manager selection as we earn no commissions.  This allows us to be brutal in our investment selection.

After putting every manager in every asset class we use under the microscope, I am pleased to report that I felt no compulsion to make any changes.  Our managers continue to be the “cream of the crop” in their asset classes, delivering the best risk-adjusted performance of their peer group.  I also see no need to alter our model asset allocations at this time.

Indeed, despite of all the economic uncertainty, 2010 was a good year.  Most diversified investment portfolios had upper single-digit returns with some even earning double digits. 

Whatever the future will hold, an investor with a diversified portfolio can breathe easier knowing that, similar to the game of baseball, while they will never hit a home run they won’t strike out, either.

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