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Telltale Signs Of A Manager’s Future Flight?
New reporting rules appear to be providing all sorts of useful information, like predicting whether a fund manager is in for the long haul or ready to split.
New reporting rules appear to be providing all sorts of useful information, like predicting whether a fund manager is in for the long haul or ready to split. Russel Kinnel of Morningstar notes that based on a years worth of information reported to the Securities and Exchange Commission, the smaller the personal investment in a fund, the greater the likelihood the manager will either retire or move elsewhere. Kinnel who is quick to point out that it may be too soon to call this a trend as the figures must be checked annually since manager ownership can change cites three examples in which the manager of some pretty large funds had personal ownership of as little as $10,000, and eventually moved on. Kinnel does acknowledge cases where even big investors have also switched or retired, and suggests further study with more data is needed to draw stronger conclusions.