Advisors are in the business of managing client expectations, as noted advisor and Texas Tech professor Deena Katz likes to say, but for many advisors, managing money to meet those expectations can be beyond their ken or outside their business model.
So then, who are the best professional money managers, particularly in the separately managed account space? Which managers stick to their professed alpha-delivering knitting and do it year after year, throughout business and market cycles? Which managers can customize their offerings for clients’ specific SRI or tax needs? We’ve done that work for you: for the ninth year in a row, Investment Advisor magazine has teamed with the Denver-based research and due diligence firm Prima Capital, now Envestnet | Prima, to announce the best separately managed account managers in multiple categories.
This year, the SMA Managers of the Year will be celebrated at a live event in Chicago, in online interviews posted to AdvisorOne and in the cover story of the June issue of Investment Advisor. (See the 2013 SMA Managers of the Year home page for more information and coverage.)
“Calm, cool and confident” is how we characterized last year’s SMA Managers of the Year. “They’ve seen it all before and continue to outperform in the most volatile of markets.”
“Seen it all” didn’t consider the increasingly bifurcated markets and economy that were in play throughout 2012 and continued this year; record debt and deficits, budget sequester and ongoing high unemployment on one hand, and rebounding housing, manufacturing and new highs on the Dow and S&P 500 on the other.
How do they not only manage in such an environment, but outperform—as measured by 12 factors—their peers in calendar year 2012, as our nominees did? How do we choose the absolute best? Is it all about one-year performance? (No, it’s not.) Picking the finalists and eventual winners is a difficult decision that springs from a well-honed, collaborative process that always keeps advisor access and the strategies’ place in client portfolio-building top of mind.