Investment Manager Selection: Post-2008 Changes & Best Practices

The investment manager selection for managed portfolios has changed in the wake of the near financial meltdown that took place in 2008. The risks that were taken with derivative products, such as credit default swap and collateralized mortgage debt obligations, has been replaced by back-to-basics investing techniques based on buy-and-hold strategies.

Wake Up Call for Disciplined Investing

The change in procedures was created by the near financial collapse of 2008 and has served as a wake-up call to investment managers and other professionals. As stewards of the country’s financial and economic system, a greater level of discipline and responsibility is required to properly assess risk and protect the interests of the investing public.

Portfolio Management

Careful portfolio selection is a process that can produce consistent results, if tempered with conservative approach. However, conservative does not mean averting risk altogether. It does mean weighing unknown risks with investment techniques that help protect investors from a loss that can create an extremely problematic situation.