Lessons From Top Fund Managers

After almost a year of interviewing top portfolio managers for Benjamin Shepherd’s Wall Street, I realized that some of these conversations had yielded key investing insights that should be gathered in one place. While much of their investment process involves painstaking fundamental analysis, their approach to risk mitigation is probably the most salient takeaway for the average investor.

Interestingly, many of the fund managers who post market-beating returns while incurring less risk aren’t necessarily mindful of risk reduction when they’re constructing their portfolios. Instead, this characteristic is merely a byproduct of their security selection. So what kinds of stocks perform well while incurring less volatility than their peers? Well, the underlying business must have a shrewd management team whose interests are firmly aligned with long-term shareholders.

Source: Minyanville

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