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How do you know if a portfolio manager is a bottom up or top down picker?

27 Feb

How do you know where he was strongest, weakest, and how would you know to reccomend him/her.

I have done the attribution analysis and worked out sector contribution and stock selection etc. but im not sure about the questions above….anyone know how to answer these Q’s

 

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  1. NJ Gold

    February 27, 2010 at 1:59 pm

    Look at the portfolio holdings as well as the largest recent buys and sells in their portfolio.

    See what the objective of the fund is, the turnover ratio, yield, avearge P/E of the stocks in the portfolio, the market cap. volitilty and how long they have been managing the portfolio; also look at the cash % position and how the portfolio has done over the last five years or so as far as returns.

     
  2. kc

    February 27, 2010 at 2:16 pm

    You could read the funds prospectus.
    Even better, you could invest in index funds and then you wouldn’t have to be concerned about such things.