Blog Contributors

Ryan Nauman
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Stephen Berei
VP, Client Services & Implementation
Jeremy Poulin
Senior Client Consultant

Tracking an Individual Portfolio Manager

Jun 5, 2014 Marc Odo

If you’re analyzing the track record of a mutual fund or a SMA, you might have 5, 10, or 20 years of history to analyze.  But what if you’re more interested in tracking the performance of an individual portfolio manager?  What if your PM has moved from fund to fund over the course of a decade or so?  How can you track his or her individual performance?

Zephyr StyleADVISOR has a nifty little trick that can help you accomplish this.  The idea is to link or “stitch-together” the track records of multiple funds for the time periods that the portfolio manager was in charge of the mandate.  The tool we will use for this is the “Blends” feature in Zephyr StyleADVISOR.  Typically blends are used to create a portfolio of multiple mutual funds, ETFs, SMAs, or whatever products might be in the portfolio.

Let’s take a look at an example.  Mr. Sonu Kalra has managed Fidelity Blue Chip Growth since mid 2009.  However, prior to running Blue Chip, Mr. Kalra managed Fidelity OTC from the start of 2005 and Fidelity Advisor Technology from early 2002 to the end of 2004.  Using Zephyr StyleADVISOR’s blend tool we can link the performance histories of these three funds in to a single track record for Mr. Kalra.

The key feature that allows us to do this is the “Insert Column” button that allows blends to re-weight at user-specified points in time.  Typically this function is used for re-allocating a portfolio amongst its constituent parts or backfilling history for a fund with minimum data.  The application here is a little different.



 

First, the user must have knowledge of the various products managed by the individual and start/stop dates of his or her stewardship.  Next, the user would load up all of the various products into the blend.  The blend is given a 100% weight to the first product managed by the PM and a 0% weight to the other products.  Next the user hits the “Insert Column” button and changes the date to the moment when the portfolio manager switches from managing one product to the next.  In the new column the new product now receives the 100% weighting and the others are zeroed out.  This process is then repeated for every time a management shift happens.

When it comes to run-time, the user now has a single data series available that represents the individual portfolio manager’s track record across multiple products.  All of the regular StyleADVISOR charts can be run.

One last note- if the various products have had different benchmarks, it might make sense to build a custom benchmark stitching together the performance histories of the various indices used.  The process used to build a custom, stitched-together benchmark would be identical to the steps used to create the track record itself.

We hope this proves useful to you.  As always, if you have any questions or need any help, contact us at 1-800-789-5323 or support@styleadvisor.com.

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