A "manager of managers fund" (MoM fund) is an investment fund that uses an investment strategy of directly selecting different investment managers and gives them mandate to make investment decisions. This is different from the traditional mutual fund where only one manager invests the fund capital in stock, bond (finance) or other investment vehicles. MoM fund is one type of multi-manager investment. The other type is fund of funds.
The assumption underpinning MoM is that diversification and balance can be achieved more readily by having a group of specialists, instead of one individual, investing the fund's capital. This means that the role of the manager of managers is to assemble a group of investment experts, closely monitor their performance, and alter the composition of the team to adapt to market conditions or fund performance. For example, the manager of a large pension fund would appoint different investment managers for different asset classes such as equities (stocks), bonds, and commodities. The performance of those managers will then be measured against their respective benchmarks, replacing as necessary to maintain the fund’s overall performance and risk control measures.
Famous quotes containing the words manager of, manager, managers and/or fund:
“I knew a gentleman who was so good a manager of his time that he would not even lose that small portion of it which the calls of nature obliged him to pass in the necessary-house, but gradually went through all the Latin poets in those moments. He bought, for example, a common edition of Horace, of which he tore off gradually a couple of pages, read them first, and then sent them down as a sacrifice to Cloacina: this was so much time fairly gained.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)
“Nothing could his enemies do but it rebounded to his infinite advantage,—that is, to the advantage of his cause.... No theatrical manager could have arranged things so wisely to give effect to his behavior and words. And who, think you, was the manager? Who placed the slave-woman and her child, whom he stooped to kiss for a symbol, between his prison and the gallows?”
—Henry David Thoreau (1817–1862)
“We also have to make sure our children know the history of women. Tell them the rotten truth: It wasn’t always possible for women to become doctors or managers or insurance people. Let them be armed with a true picture of the way we want it to be.”
—Anne Roiphe (20th century)
“I am advised that there is an unexpended balance of about $45,000 of the fund appropriated for the relief of the sufferers by flood upon the Mississippi River and its tributaries, and I recommend that authority be given to use this fund to meet the most urgent necessities of the poorer people in Oklahoma.”
—Benjamin Harrison (1833–1901)