Morningstar recently did an article about its nominees for fund manager of the decade. They listed the five managers below (although Heebner (CGMFX) and Pilara (RSPFX) are strange and notable exceptions). Their criteria are:
“The Manager of the Decade award is not just about returns. We consider the risks assumed to achieve those results and take into account the strength of the manager, strategy, and firm’s stewardship. We also think it’s a greater feat to make a lot of money for a lot of people than to earn sky-high returns on a tiny pool of assets, so asset size factors in.”
The five managers are:
Interestingly enough, following Seth Klarman’s top 20 positions on AlphaClone would have beaten all of these. There is a huge dump of Seth Klarman related info over on HedgeFundLetters. One of the other nice things about Klarman is you can clearly see the independent thinking – there is not a ton of overlap with his positions and those of other HF managers.
You know how I feel about mutual funds – it’s kind of looking to Europe for the best players when the NBA clearly attracts the best talent.
In related news is a nice article from the FF boys on Luck vs Skill in Mutual Fund Performance.