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Rekenthaler Report

Is the Star Manager Extinct?

The glamour is gone.


Is the Star Manager Extinct?
To answer my own question: not completely. Jeff Gundlach was a (super)star manager until fairly recently, when he left TCW to start his own firm, DoubleLine. There are a few others, as well.

Nevertheless, there's no doubt that things have changed mightily over the past quarter-century. Back in the day, the manager was king (or occasionally, queen). Most investors, advisors, and journalists cared less about a fund's sponsoring company or even its expense ratio than they did about the reputation of its portfolio manager. Two assumptions underlay that mind-set. First, that fund managers operated in something of a vacuum; that is, if you moved a manager from one fund company to the next, things wouldn't much change. Second, that past performance records were strongly correlated with future records. Today, neither of those assumptions is widely believed.

John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.