Ned Montag:
Over the years we have come to recognize there are several things that people are looking for when they look for a portfolio manager or investment manager. There are probably three, four, or five qualities in that decision that we have come to understand.
John Montag:
The first and most important quality in a Portfolio Manager is a demonstration of understanding the person and the assignment. There must be an understanding of what exactly you are asking me to do. And it is our responsibility to meet the client where they are and what they hope to accomplish. That doesn’t mean they have to have clarity of thought; instead, they must be willing to converse and to keep moving forward.
Ned Montag:
These topics can make some people anxious, and sometimes the markets themselves create anxiety. That’s pretty common in our space. You must be able to communicate easily and have effective communication skills. I can’t say enough about it.
John Montag:
Therefore, I think the second aspect is that there has to be honesty and integrity in the relationship.
Ned Montag:
Often, people look for someone they believe they can trust. It is very natural for an individual to assess another. At some point in your engagement with them, decide - If I can trust this person, can I see myself communicating with this person over time?
John Montag:
The third point that I would say someone should search for is some backbone. When you are dealing with someone’s finances, there are times when you have to have a challenging conversation. Tough conversations don’t necessarily mean they’re hard, angry, sad, or anything else, but sometimes it simply means communicating that we need to take a different direction. That ability, that backbone, allows someone to know that their Portfolio Manager is watching out for them and their portfolio with a long-term vision in mind.
Ned Montag:
You also want a Portfolio Manager who is proactive and highly responsive to questions and inquiries in a busy world that increasingly relies on non-human engagement, such as texting or interactive websites. You want someone who is responsive when you have questions. Someone who is proactive and who is contacting you directly with topics of concern. And someone who knows that part of the assignment is to be in touch with you. I’ve often told people who’ve asked me, “What should I look for in a good investment advisor?” and as I’ve said, we look for the basics. We make sure they’re competent and reputable and make sure that you understand what they do. Fundamentally, you are looking for chemistry. Suppose you have a group of candidates who all measure equally well in technical and other qualities. What you are looking for is chemistry; there is going to be bad news to review, there are going to be decisions to make, and there are going to be surprises, complexities, and costs - things that can upset people. And so, you want this to go as well as it reasonably can. You are looking for a personality that sings well to yours.
The information provided is for illustration purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action to be taken. MONTAG employees do not provide legal or tax advice. For specific legal or tax matters, you should consult with your own legal and/or tax advisors. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible.
