LOOK FOR FIRMS WHERE MANAGERS INVEST CONSIDERABLE SUMS ALONGSIDE SHAREHOLDERS

July 5, 2019
LOOK FOR FIRMS WHERE MANAGERS INVEST CONSIDERABLE SUMS ALONGSIDE SHAREHOLDERS

  • How much money portfolio managers have invested in their own funds is a key criteria used to judge funds
  • Significant “skin in the game” is seen as important indicator of management commitment & responsibility
  • SEC requires disclosure of managers’ investments in funds they manage

Information available:

  • – Mutual fund’s Statement of Additional Information in prospectus
  • – SEC’s electronic data gathering, analysis, and retrieval database (EDGAR)

Watch the related WEALTHTRACK episode.


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