Third-Party Managers (Tactical vs. Strategic)

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December 16, 2009

Now that 2008 is about to be safely behind us and we have had 2009 to recover -- and, who knows for sure, but 2010 is looking like it could be okay, yes? -- I'm wondering what you think about third-party managers.

We've discussed tactical (float like a butterfly, sting like a bee; in other words, be flexible and responsive to investment conditions) vs. strategic (diversify proportionately so that all risks are considered and non-correlation is paramount; in other words, get the right percentage of each thing tucked into a portfolio). Well, what about doing some strategic portfolios of your own and surrounding it with tactical managers? Or what about surrounding a strategic third-party manager with other, tactical, third-party managers?

About the Author
Richard Hoe

Richard Hoe

Richard Hoe, ChFC, CLU, AEP has been an investment professional for 40 years, and is a registered representative and investment advisor representative. He has been writing professionally for more than 50 years, and is a member of the adjunct faculty at the California Institute of Finance, a graduate school at California Lutheran University that offers an MBA in financial planning. The information in Mr. Hoe’s columns is intended for financial professionals only, not the general public. Opinions expressed are not a solicitation to buy or sell any specific security. Mr. Hoe may have positions in the securities or other investments discussed in his columns.

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