This week, I want to share four traits that would make you the world’s worst investment fund manager.
I very rarely talk about undesirable traits.
Honestly, I’m not sure why – because running an investment fund requires the right characteristics and temperament. If you don’t have them, running a fund isn’t for you.
So here’s the deal. I’m going to list the worst traits an investment fund manager can have. If you have any of these traits, don’t worry! I’ve listed some simple things you can do to manage them.
Impatience is a fund manager’s worst enemy. Imagine being impatient in this kind of environment. You’d be tempted to cut corners. For instance, you might establish your fund before you’re ready. Or you might look for ways to get around regulatory requirements.
Solution: The more experience you have, the more patient you usually become. Go the extra mile to master your craft before managing a fund.
The life of an investment fund manager requires discipline. Those that lack it will struggle. Undisciplined traders often chase losses. They can also neglect their physical and mental health.
Solution: Building a daily routine is an effective means to become more disciplined. Develop a structured workday – and make time to exercise.
Someone that struggles to communicate will find it difficult to manage a fund. First, the fund’s investors require regular correspondence about the fund’s performance. Second, a fund manager will need to communicate with staff and multiple service suppliers.
Solution: Some people aren’t natural communicators. But this is a skill you can develop. Use tools like Zoom, Skype or Slack to respond quickly to urgent issues.
Fund managers need to delegate. It’s an essential skill to manage a successful investment fund. Unfortunately, some individuals struggle to trust members of their team to complete tasks. This can distract fund managers from their most essential task – trading.
Solution: Distrustfulness can be difficult to overcome. But you have to accept that sustained success requires a team. You can’t do it alone. Hire well and trust those people to deliver.
Establish Your Fund
Do you want to create your own investment fund? Just email me and we can arrange a free Skype consultation.