What would cause Litman/Gregory to replace a manager?
When we hire stock pickers as sub-advisors for a Masters Select fund, it is our objective to apply an extremely high standard and to be exceptionally thorough in our research of the stock-picking team, their process, their execution, the culture and business objectives of the organization and their enthusiasm for being part of Masters Select. In meeting this objective, we hope that each sub-advisor we hire will be with the fund for the duration of his or her career. The conviction we gain from this process also makes it easier for us to ride through the occasionally bad periods of performance that even great stock pickers experience. Despite these efforts, sometimes events outside our control force a changesuch as when Bruce Bee (one of the original Masters Select International managers) died. The other reason for a change would be if our opinion changes with respect to a managers ability to deliver good performance.
