Style Importance in Manager Selection
Submitted by LHD Retirement on April 25th, 2018By Jess DeGabriele
A sometimes-overlooked tool in the advisor and plan sponsor’s analytical toolbox is investment manager style. Style is used to help segment different asset classes and investment managers into comparable subgroups, such as labeling a growth manager as “growth” as opposed to “value.” The objective of placing different managers into style groups is to assist in building diversified portfolios that are exposed to return factors from many different sources, and using the style group to compare managers and determine talent. Style simplifies these tasks.