Searching for Expert Fund Managers
摘要
Consistently outperforming the market is difficult if not impossible for an individual investor but also for a fund manager. Finance research indicates there are various profound skills in fund management. These include the ability to select stocks, effectively time the market, acquire and utilise (private) information, and maintain a disciplined investment strategy that avoids cognitive biases. These findings are inferred from analysis of data at the level of funds. Consequently, they do not say much about the skills and characteristics of an expert fund manager. For example, what are the abilities and traits of an expert fund manager who is skilled in timing and selecting stocks. Research on expertise shows that developing necessary abilities and skills in a domain requires an extended period of deliberate practice. This involves high-quality experience with feedback, reflection, and progressively increasing challenges. Drawing on literature in expertise and finance, this chapter explores fund manager expertise by interviewing recruiters of fund managers and fund CEOs to understand how they characterise expert fund managers.