The goal of a good hedge fund manager is to generate consistent above average returns. Here are some key traits that successful portfolio managers have in common to generate good returns:
Technically sound: Good portfolio managers have a strong foundation in analytical finance and understand the ins-and-outs of the companies they own.
Natural decision makers: Investing involves making decisions around the clock, and a lot of times you are acting with uncertainty. Good portfolio managers can make decisions and make them naturally, because the worst case scenario in a lot of situations is to do nothing while the market and companies are changing.
Emotional stability: Portfolio managers need to stomach the market volatility and act rationally. You’ve heard that a lot of investing is about having discipline. High emotional stability is required in having the discipline to hold onto your positions when they are not going well, because you have high conviction in your thesis. Warren Buffett is famous for ranking high in emotional stability.
Marketing: On top of having good performance, a good portfolio manager needs to market his strategy effectively to raise assets. This is often overlooked as a key trait in building a successful fund.