The parable of four fund managers

THE PARABLE OF FOUR FUND MANAGERS

Ian Lance of RWC Partners examines the pros and cons of four very different fund management styles.

This is a tale of four managers at Global Megabucks Asset Management: Danny Defensive, Ivor Income, Vinny Value and Sue Sensible. Danny Defensive Danny Defensive was an extremely confident fund manager who drove a Porsche and would never stop to ask for directions even when he was hopelessly lost. He was also very convinced about his own ability to forecast macroeconomic trends and seemed to be permanently gloomy about the state of the economy. Danny, therefore, structured his portfolio to cope with the depression he always thought was on the horizon by owning large defensive equiti...