How do advisors evaluate the credibility of a fund manager?

Evaluating the credibility of a fund manager involves a thorough analysis of their past performance and investment strategy, which provide critical insights into their ability to manage funds successfully over time. Past performance indicators, such as historical returns and consistency in generating profits, are essential in understanding how well the fund manager has navigated various market conditions. Additionally, examining the manager's investment strategy reveals their approach to risk management, asset selection, and overall investment philosophy, which helps potential investors assess alignment with their financial goals.

This comprehensive evaluation allows advisors to ascertain the fund manager's skills, decision-making process, and historical effectiveness in achieving returns, which are more relevant metrics than merely fund size, educational credentials, or anecdotal testimonials from investors. While those aspects may provide some insights, they do not offer a complete picture necessary to gauge a fund manager's true capability and reliability.