Do You Own Multiple Funds Run by the Same Manager or Boutique Family?

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Do You Own Multiple Funds Run by the Same Manager or Boutique Family?

Zebras don’t change their stripes, and fund managers rarely change their investment styles. If you own two funds managed by Famous Manager A, chances are you own two of the same thing. That’s because managers generally have ingrained investment habits that they apply to every pool of money they run. So no matter how much you love a particular manager, don’t buy more than one of his or her offerings if you are serious about diversification.

What about from one boutique family?

Some funds are specialists in Asia; others concentrate on value. Such fund families are excellent at what they do, but it’s unlikely that owning three of their funds gives you much more than you’d get with one.

Nevertheless, many of the big firms provide opportunities to diversify, and a handful can truly claim to be one-stop shops. Moreover, many savvy fund families now offer their own fund supermarkets, which allow investors to sample funds from other shops while still remaining loyal to their favorite families. That’s a win-win situation.