All-Time Great Multi-Manager PM: 3 Takeaways That Stuck With Me
Investment research style and philosophy, modeling and portfolio construction/risk management.
Last week’s post The Best PMs at Citadel, Millennium, Balyasny: What They All Share gained traction, and I received a number of messages from Phoenix members who all seemed to agree with the premise of what the truly great PMs share in common.
One person, in particular, mentioned how the first PM he worked under was very big on deeply analyzing the business and the industry and taking very big-picture ideas like industry transformations and innovations and layering them on top to take longer-term views on stocks and sectors, which I thought is a really interesting approach for a multi-manager PM. They had a lot of fun and success as a team, but that PM eventually got snatched by a competitor. Since then, he’s been working under a more typical multi-manager PM, focusing more on “near-to-medium-term setups”.
We had a great guest speaker session at Phoenix with an all-time great multi-manager PM. Thank you all for the thoughtful questions. Given everything in the last post and what makes a PM successful, it’s important we hear and learn from people like him and our own Allen White, multi-manager investors with true success and longevity. We still cover everything that is taught at the best internal training programs and the full long/short skillset and resources, including the typical multi-manager process (a lot of important elements to be taken away from it). Now more than ever, though, it’s important to recognize how the landscape is changing. Doing what most other investors are doing can be quite dangerous.
The recording will be up soon, and I’m yet to fully rewatch it, but in this post I want to share 3 quick takeaways from my notes, one from each category: investment research philosophy, modeling and portfolio construction/risk management. These aren’t necessarily the biggest takeaways (I’ll share those after I rewatch), but they should be helpful and practical.
At some point, I will also have an additional resource to share that I’m really excited about and think you will really like.
I did expect some of the guest speaker session would resonate with what we wrote in the previous post, but it actually exceeded my expectations how closely it all aligned.