Investment Manager Selection

Free CFA Level III: Private Wealth lesson in Performance Measurement. 41 min read, ~6,105 words.

Returns-based style analysis (RBSA) regresses returns against style indexes, backward-looking, no holdings needed. Holdings-based style analysis (HBSA) examines 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?). Type I...

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What this lesson covers

Content
Example 1
Example 2
Common Mistakes
Key Takeaways
Exam Shortcuts

Learning objectives

manager selection

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