Multi-Manager Investment

A multi-manager investment is an investment strategy where multiple fund managers, each with their own specialization, are employed to manage different portions of an investment portfolio. This approach aims to diversify across different asset classes, investment styles, and strategies to achieve better risk-adjusted returns. Multi-manager funds can reduce the impact of poor performance by any one manager, as the portfolio is spread across multiple experts.

Example

An investor selects a multi-manager fund where different fund managers specialize in equities, bonds, and alternative assets, reducing overall risk through diversification.