Unfortunately most investors will tell you not to. The reason is that some of them have been victims of expensive and mediocre funds leading to huge losses on their part. However, Timothy Armour says that an investment is only as good as the people entrusted to manage it. As such, rather than shunning away from hedge funds, investors should look for those managed by active managers. These are managers who will stop at nothing to see the investors make more than average returns.
In July 2015, Armour was appointed chairman of Capital Group. He replaced James Rothenberg, who passed away following a heart attack. Armour has had a long career at the company characterized by commitment and hard work. Thanks to his good leadership, Capital Group was recognized by Janet Yang who works as an investment analyst. She called him a committed portfolio manager and gave the company an A rating. Armour began his career at capital Group in 1983 during an associate’s program. This was after he completed his degree in Economics at Middlebury College.
One of the issues that Armour addresses is the investors drive to seek investment opportunities that they deem safe. One investor; Warren Buffett uses a bottom up investment strategy where he analyses companies and builds a portfolio based on the analysis. Additionally, he Armour goes for passive index investments such as the S&P 500 rather than venturing into hedge funds. This strategy has worked for him in the past and he hopes will continue to do so in the future.
In response to Warren Buffett’s investment strategy, Armour advises investors to comprehensively evaluate and understand investment options before taking them up. He argues that there is no investment option that is completely safe and thus to get good returns investors need good managers. He says managers who have personal interest in the investments; such as those who have invested their own money, will take care of the investors’ money like their own. This is important especially during the current economic uncertainty following President Trump’s election.