We Eating Our Own Cooking

As the great master himself said in one of his reports "We eat our own cooking". I wanted to remind us how important it is for a Manager to have his own wealth riding along with yours.

At IGIR, we strongly believe in this idea. We have a part of our net-worth tied to yours. We consider ourselves as managing partners rather than money managers.

So go ahead and ask yourselves, how is my money manager doing? How much of his net worth is riding along with yours? Just something to consider before making a choice about who to partner and trust your money with.

Morningstar has recently released insider ownership data on thousands of funds. What the fund-tracking company found was surprising — and a bit disheartening, too. Almost half the managers of U.S. stock funds have none of their own money at stake. It's worse for international offerings: 61% of those managers decided all of their money was better served elsewhere. With the exception of a few caveats discussed below, "I can't think of why anyone should invest in a fund that its own manager doesn't invest in," says Russel Kinnel, Morningstar's director of mutual fund research.

Here is the link to the reference