What makes a good investment manager?

A good investment manager prioritizes achieving consistent returns that help clients meet their financial goals, rather than attempting to beat market benchmarks at the expense of client interests. Christopher Davis, in a discussion on The Knowledge Project, highlights the importance of focusing on the client's needs over the manager's performance relative to the market. He emphasizes that while an investment manager might prefer a strategy that aligns with market performance, clients benefit more from steady, positive returns that support long-term goals like retirement or funding education 1.

Additionally, Davis notes the importance of maintaining a calm and rational approach during crises, such as the financial crisis or COVID-19, which can help protect client investments and enable better decision-making under pressure 1. This includes understanding and managing the asymmetry of incentives in money management and ensuring client objectives are never sidelined.