Buying high-quality businesses at reasonable prices and holding them for the long term is generally accepted to be the best approach for finding great stocks. But how can investors identify great fund managers? 

Anthony Murphy, Chief Executive Officer at Lucerne Investment Partners believes there are three key ingredients that investors should look for:

• Co-investment – Portfolio managers should have a significant personal stake in the funds they manage.  
• Capacity – By keeping a fund small, the manager can stay nimble and maintain high levels of performance.
  
• Capital preservation – a focus on reducing downside is critical, not just at a portfolio level, but at a fund level too.
  

Murphy expands on all these points in the video below. 

A different type of wealth management 

Lucerne is Australia’s pre-eminent independent Investment Group, providing high net worth investors access to a family office-style service. We allocate to any investment that meets your objectives and we invest alongside you. Click ‘CONTACT’ to talk with us.