The more managers you have, the greater the odds your returns will be mediocre, at best. Northern Trust Asset Management, though, has quantified it and taken the notion apart for examination. All too often, it seems, the more managers you add, the greater your odds of running into trouble. If you have less than five managers, your uncompensated risk amounts to 43% of overall risk, according to Northern Trust. Often, Northern Trust notes, fund managers get hired because they burnt up the turf over the past year.

Source: Forbes October 31, 2020 21:45 UTC