Asheesh Advani, Chief Executive Officer of Covestor, discusses how private wealth managers can overcome the difficulties of selecting investment managers. Covestor will be present at the IFG Wealth Management Forum 2013.
Mirroring the Performance of Top Investment Managers - Asheesh Advani, Covestor
www.internationalforumgroup.comMirroring thePerformance of TopInvestment ManagersTo achieve steady growth, private wealthmanagers have to pick money managers with ahistory of low maximum drawdowns, says AsheeshAdvani, Chief Executive Officer of Covestor.Unfortunately, the industry is missing a real senseof accountability and transparency with regard toreturns, so private wealth managers are makingsome of their manager selection decisions withtheir eyes half closed. The Covestor platform couldbe part of the solution, according to Advani.Covestor will be attending the upcoming IFGWealth Management Forum 2013 in Phoenix,Arizona, April 22-23. Ahead of the event, Advanidescribes Covestor’s platform and how itaddresses issues troubling the private wealthmanagement industry today.IFG – How can private wealth managers achievesteady growth that outperforms the S&P 500?Advani - My recommendation is to focus onpicking managers who have a history of lowmaximum drawdowns. It is simple math. When themarket is in deep decline, it is easy to dig yourselfinto a hole that is hard to come out of. Losing 30per cent of a $10 million portfolio in a rough patchmeans you will need a 42 per cent gain just tobreak even. With an average of six per cent gain ayear, you will need six years to get back to whereyou were.IFG - Tell us more about the Covestor platformand what issues it addresses.Advani - We are a marketplace for moneymanagement talent. Covestor allows investors toshop for money managers, based on the metricsthey consider important.Wealth managers have tried to come up with theirown solutions to the accountability problem, withseeding programs for example, but we haveaccelerated that and made it much easier andcheaper for them to access the information theyneed. They can now compare managers with themetrics they want and get access to top managersthey would not have found on their own.IFG - What metrics should private wealthmanagers look for?Advani - Everyone has a different set of goals andinvestment philosophies, so we try to providemany metrics of value. We have volatility andperformance measures, including verifiedhistorical performance metrics. This might be anobvious one, but I am always amazed when aportfolio is presented as having beaten themarkets by a certain date, when the story isdifferent if the date is changed. It is important tocheck how a manager has performed relative tothe market or benchmark on different dates.Interview with: AsheeshAdvani, Chief ExecutiveOfficer, CovestorAsheesh Advani, ChiefExecutive Officer ofCovestor, discusses howprivate wealth managerscan overcome thedifficulties of selectinginvestment managers.Covestor will be present atthe IFG WealthManagement Forum 2013.FOR IMMEDIATE RELEASEIFG WEALTH MANAGEMENT FORUMTHE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICESApr 22-23, 2013, Ritz-Carlton, Phoenix, Arizonawww.ifgwealthmanagement.com
www.internationalforumgroup.comIFG WEALTH MANAGEMENT FORUMTHE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICESApr 22-23, 2013, Ritz-Carlton, Phoenix, Arizonawww.ifgwealthmanagement.comIFG - What are the benefits of synched co-investing?Advani - Our technology allows private wealth managers to replicate the trading activities of professional and experienced individualinvestors in real time. In order to succeed, a portfolio manager should be good at presenting himself to the industry, but many of thebest investors are not good at doing so. We give wealth managers access to these people, who can focus more on investing than onselling themselves to raise capital.For more information: firstname.lastname@example.orgAbout the IFG Wealth Management Forum 2013IFG’s Wealth Management Forum 2013 provides a unique platform for investment decision makers from single and multi-family officesto engage in vibrant benchmarking sessions and gain practical solutions and best practices to achieve optimal portfolio returns.For more information please send an email to email@example.com or visit the event website at www.ifgwealthmanagement.comAbout International Forum GroupInternational Forum Group is a world-leading business information company, organizing exclusive, invitation-only gatherings ofbusiness leaders across multiple industry sectors.Providing a platform for senior executives to build mutually beneficial business partnerships, International Forum Group hasdesigned an unparalleled system for matching the core buying needs of the world’s largest organizations with the best solutionsavailable in the global marketplace. Empowering all our clients with the knowledge they need to lead in their respective fields is afundamental goal of all our forums.For more information, please visit: www.internationalforumgroup.comAbout CovestorCovestor brings the clarity and efficiency of an online marketplace to the world of money management. Investors can compare andselect from a transparent marketplace of money management talent that includes top performing portfolio managers and successfulinvestors. Covestor’s Portfolio Sync technology automatically replicates trades, providing clients the convenience of “set and forget”functionality and the protection of Covestor’s proprietary trade filtering.For more information: www.covestor.comAll rights reserved. The above content may be republished or reproduced. Please notify prior to usage at firstname.lastname@example.org