CFA Society Hartford co-sponsors education luncheon
"Large funds, soundly managed, can produce at best only slightly better than average results over the years. If they are unsoundly managed, they can produce spectacular, but largely illusory, profits for a while, followed inevitably by calamitous losses." - Ben Graham, Legendary Investor and Founder of the CFA Institute
CFA Society Hartford and CFA Institute Selection sponsored an education luncheon focusing on investment manager selection, on 27 February 2019. Titled “Hiring & Firing Investment Managers,” the Society heard from two presenters, Benjamin Lavine, CIO of 3D Asset Management, and Paul Kovarsky, CFA, Director, Institutional Partnerships, CFA Institute, who shared their perspectives on best practices for investment manager selection.
Ben is an industry expert with over 20 years of experience across institutional consulting and investment management; spanning both the institutional and retail investor bases. He provided the keynote presentation, sharing his perspectives on both the challenges in manager selection and even some of the existential issues facing the money management industry in the wake of lost market share to passive investing.
In his presentation, Ben advocated that investment manager selection represents one of the most important decision points within an institutional investment process. All investors, be they institutions, private wealth or individuals, can benefit from improving their manager selection skills. However, Ben noted, the concept of ‘professionally-managed’ portfolios has come under attack from both the financial media and passive index advocates as they argue that ‘active managers’ have not added value net of the fees they charge. Ben acknowledged both the academic arguments against and real-world challenges facing traditional active management but believes that the arguments against active management only help bolster the case for professional manager due diligence.
The presentation was well received by CFA Society Hartford and the luncheon was a great success. Ben and Paul previously presented to CFA Society of Miami and have plans to share this presentation with additional CFA Societies throughout the year.
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