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.
