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Macro Man

Is It Better to Have a Team or a Single Manager Overseeing Your Fund?

An analysis of the largest funds benchmarked to large-cap, small-cap, and emerging-markets indexes finds solo portfolio managers outperforming.

What’s the ideal number of portfolio managers for an investment fund? Whether you’re a proponent of a single-manager model or prefer shared responsibility, there’s a saying to support your view: “Two heads are better than one.” “Too many cooks spoil the broth.”

Indeed, there are good arguments in favor of both approaches. A single manager can be more decisive and ensure thematic consistency throughout a portfolio, albeit without the moderating influence of a second set of eyes. A fund management team offers the benefit of diverse viewpoints and increased bandwidth, perhaps with the risk of leaving money on the table when key issues require consensus.