Evaluating Investment Managers During Downturns

The Wealth Enterprise Briefing

In the most recent episode of The Wealth Enterprise Briefing, WE Family Offices’ Michael Zeuner and Matt Farrell explored the process of evaluating investment managers during periods of underperformance. They discussed the importance of assessing managers based on both market context and strategy alignment, underscoring the need for a balanced perspective when managing long-term investments.

Key points from the discussion included:

• Establishing a recommended three-year holding period for investment managers, except when red flags emerge.
• Using qualitative and quantitative methods to evaluate managers, focusing on communication and risk management.
• Special challenges involved in evaluating hedge funds, especially in volatile markets, which call for strong conviction and thorough analysis.

The episode also touched on the psychological factors investors face when managers underperform, including the discipline required to maintain a long-term perspective. Michael and Matt suggested that clear initial underwriting and regular assessments provide a foundation for confident decision-making during both positive and challenging market cycles.

Listen to the full episode for deeper perspectives into evaluating managers effectively during times of underperformance.

As always, if you have any questions or need further insights into your investment strategy, please don’t hesitate to contact us.

Important Information:

This podcast contains our current opinions and commentary that are subject to change without notice. Our commentary is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation, or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information contained herein does not constitute legal or tax advice to any person. Please consult with your legal or tax advisor regarding any implications of the information presented in this presentation.