Expert investors: what fund managers actually do

While they sometimes get a bad press, a good fund manager can be of enormous value when it comes to growing your investments.

The expertise applied by a professional fund manager when selecting companies to invest in will considerably improve the chances of strong investment returns as compared with the likely returns of a portfolio built by a less experienced private investor. A key early part of the investment process being the identification and origination of investment opportunities.

Research and Analysis 

A fund manager’s decision to make an investment with their funds subsequently stems from detailed research – involving investigating companies or assets, technical analysis, financial modelling, attending industry events and engaging sector specialists, while also employing wider risk assessment techniques. They then undertake detailed due diligence and negotiate sensible valuations prior to making an investment commitment.

The struggle of the private investor

Although everyone can make investment decisions, not everyone is best placed to manage risk effectively. A fund manager is an investment professional who is qualified to take appropriate decisions; backing the best businesses to accomplish predetermined goals.

Few private investors have the time or the expertise to conduct a thorough investigation of potential investments. This is where CoInvestor comes in. CoInvestor is a digital platform that allows investors to build their own portfolios of direct investments in alternative assets by co-investing alongside experienced fund managers on a deal-by-deal basis.

Why CoInvestor?

 At CoInvestor, each investment listed on the platform has been subjected to detailed and rigorous investment processes by the fund manager presenting it. The fund manager has already committed to proceed with the investment using their own funds. By listing the investment on the platform, they give you the opportunity to join them as co-investor.

If you do decide to proceed with the investment, all the administration processes are taken care of, and following your commitment the fund manager will remain actively involved in monitoring the investment – working towards a successful exit at the right time.

As most alternative investments are generally long term investments, researching and following the right fund managers is a key part of the process. The increased risk of alternative investments makes the expertise of a professional particularly important. By enabling direct investment alongside the experts making the decisions, the CoInvestor platform offers private investors access to the kind of opportunities that would previously have been the sole domain of institutional investors.