Please explain “the multi-manager” approach”?
Every portfolio consists of six basic segments, each focused on a special area. Investments in each segment are spread among three to ten different no-load mutual funds. Funds are selected by screening and analyzing published data. Selected mutual fund managers are interviewed and monitored closely. Portfolios at The Proper Analysis own thousands of individual securities in dozens of funds. A money manager, who purchases individual securities, would need to use very small positions to achieve the same degree of diversification. That cannot be done on a cost-effective basis, so even if a money manager did know enough about each issue to want to use them all, he or she would find it virtually impossible to implement such a plan. Using multiple managers is a standard risk-control technique for multi-billion dollar accounts. We believe individuals deserve the same careful control.
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