How a Fund Manager Analyses a Company

Just as Morningstar analysts interview managers before rating their fund, managers in turn conduct their own due diligence before investing in a company

Jackie Beard, FCSI 22 May, 2013 | 9:00AM

See full coverage of the Morningstar Investment Conference here.

At the Morningstar Investment Conference, one manager interviewed the CEO of a company he is invested in, explaining his process and illustrating the questions and topics that need to be answered; Morningstar interviews managers on their funds in a similar fashion so here we provide our insights into how managers screen for, research and assess companies. 

At the MIC, Tim Steer of Artemis grilled Geoff Drabble, CEO of Ashtead Group (AHT), on his recent results and future plans for the company. In many ways, this was little different from the way the Morningstar analysts interview fund managers. We like to know what prompted their decisions, what have been the contributors to fund performance—both good and bad—and what their thoughts are going forward. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Ashtead Group PLC2,774.00 GBX-2.32

About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA

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