Investment Manager Selection

Free CFA Level III: Private Wealth lesson in Performance Measurement. 38 min read, ~5,747 words.

Returns-based style analysis (RBSA) regresses returns against style indexes, backward-looking, no holdings needed. Holdings-based style analysis (HBSA) examines the current portfolio, forward-looking, requires holdings disclosure. The Four Ps: Philosophy (why markets misprice), Process (how ideas become trades), People (team stability and alignment), Portfolio (does it match the stated approach?). Philosophy...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• manager selection

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