Fund manager behavior is predictive while past performance is not. The second part of that statement, we hear often. The importance of fund manager behavior is less known and discussed as part of this article series.
The first article introduced investment strategy as an alternative to the style grid for forming active equity mutual fund peer groups. The second article discussed the advantage of diversifying equity portfolios based on fund strategy and proposed a six-strategy core equity portfolio. This article explains how to identify the best funds within each strategy.
