Most stockbrokers and investment consultants have a platform of managers that they tout. Generally, and unfortunately, those platforms are small and relatively unchanging. Why such a small number of managers fit such a large number of clients is one of the industry’s mysteries. What is not a mystery is the financial relationship between them. Fortunately, today there are several commercial databases that collect money managers in varying styles or classes, which are used by investment officers and some better consultants. The databases make a convenient place to start since most managers list their performance with one or more of them.
The SEC requires every manager publishing his performance to make the statement ...