Due Diligence and Manager Selection

Seidman Wealth: Protect. Prosper. Peace of Mind.

While no system is absolutely foolproof, virtually all investment fund frauds and implosions in recent memory could have been foreseen and avoided through proper due diligence.  We take great pride in hearing time and again from investment managers that the quality of our up-front and ongoing due diligence is second-to-none, and that our screening process is the toughest they encounter.  A manager is evaluated not merely against their benchmarks and peers, but in the context of their utility to our client portfolios.  That is, a certain fund may be “good”, but if it does not bring specific desired attributes, such as hedging out a particular risk, providing a particular return stream, or access to a specific asset class, it will not be included in our portfolios.  We are not in the business of investing in unproven stories or ideas; we invest with managers that have proven themselves adept at running their strategy and businesses over time.  In researching a manager, we give greater weight to the question “What if we’re wrong?” than “What if we’re right?”