We’re Not Afraid of the Tough Questions

Some portfolio managers shy away from the difficult questions. Not the team at Prospector Partners:

• How much money do you have invested in your portfolios?
• When will your strategy typically do well? When will it underperform?
• What was one of your bigger mistakes in the portfolio?

We’ve done enough meetings with investors. We know what matters to you and so, it matters to us.

Here’s the answer to the first. Download our Q&A below to get the other two.

How much money do you have invested in your portfolios?

John Gillespie: More than 20% of the money managed by Prospector Partners is our own. We eat our own cooking. The risk tolerances in the portfolios are reflec­tions of the principals’ risk appetite for which their “skin in the game” represents the vast majority of each Prospector associate’s liquid net worth. We also pay close attention to after-tax results and have been successful over the life of the funds to deliver advan­tageous tax consequences to our investors. My father, a trust and estate attorney, always advised that “you can’t eat pretax performance.”

Get answers to the tough questions in the Q&A with Portfolio Managers.