What It Is:
How It Works/Example:
A portfolio manager manages mutual funds and other investment funds, such as hedge or venture funds. He or she is usually an experienced investor, broker, fund manager, or trader with general industry knowledge and a track record of results. Portfolio managers often have a specific investment approach, such as a focus on active or passive investments.
Why It Matters:
An investor should consider the background, style and track record of the portfolio manager when examining a fund as an investment vehicle. Funds will often highlight the portfolio manager as a key marketing advantage for attracting investors.