Solving the Manager Selection Puzzle

Five strategies for overcoming behavioural biases in manager selection.


May 2022


Five Strategies May 202
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Summary


Portfolio manager selection is difficult. Sophisticated quantitative tools for manager evaluation can give a false sense of comfort to allocators.

The big challenge is overcoming our natural biases in decision making when selecting managers.


All too often we can be influenced by recent performance and seduced by a compelling narrative rather than asking how much of performance may be driven by chance.


In this paper we set out five strategies that can be incorporated into the investment process to help allocators overcome typical behavioral biases.




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