Investment Manager Selection


Manager Selection: Our Approach

History has proven no single investment manager can consistently outperform the market. While statistical anomalies do exist, the likelihood of finding these managers and concentrating assets with them is not only slim, but ill advised.

Many investment managers and companies may have stellar returns for a quarter or two, but Convergent only recommends investment managers we believe can perform over the long haul. Without this confidence, we are equally as comfortable recommending a tax-enhanced index manager or simply an index.

Convergent Wealth Advisors’ investment research team continually identifies new investment managers we believe offer quality service. We strive to find managers with:

  • Outstanding backgrounds
  • Track records of outperformance
  • Repeatable niche strategies for investment management
  • Demonstrated risk control procedures
  • Properly aligned financial incentives

A common theme among our investment managers is an ability to manage downside risk. We make no excuses for missing some of the upside in a rapidly rising market if the managers can stem losses in a down market. Importantly, for clients who spend from their portfolio to fund their lifestyles, managing risk to achieve the maximum number of positive periods can have a profound impact on an investment plan’s success.

As a wealth management company, Convergent Wealth considers investment manager selection and due diligence critical for constructing and sustaining your optimal portfolio. We conduct extensive quantitative research, drawing on a wide array of analytic tools and a database of thousands of hedge fund and other investment managers to find great managers who seek to capture opportunities while managing risk.