Lessons learned?

Is experience the best teacher? Here we look at whether multi-managers who weathered the dot.com bust are faring better in the current crisis

In the run up to 2001, investors embraced the concept of multi-manager as a strong diversification play that left picking funds to the experts. As markets rose, more multi-managers joined the fray. After all, how difficult could it be to group top-performing fund managers and earn a nice fee too? But multi-managers soon found there was more to it than picking names from a hat. Relying on past performance rather than solid analysis left many stranded overweight in tech stocks when the bubble burst. The classic multi-manager play was Rory Powe's Invesco European Growth fund, packed with s...