Does Manager Research Demand a CFA?

FUNDfire, June 6, 2008

Question
While the CFA may be the right credential for someone who analyzes individual securities, is it the right credential for an analyst conducting research on money managers? If not, what is?

Answer

Alvin Spector is a partner at Lantern Partners, an executive search firm based in Chicago. The training and discipline provided by the CFA program is definitely useful. It demonstrates that an individual has a standard of excellence in analysis. It can be just as appropriate for someone analyzing individual securities as it is for someone researching money managers.

That said, each company’s culture dictates the relevance of a certain certification for success within the organization. Many consulting and manager of manager organizations (e.g., fund of funds and family offices) have CFA cultures. Someone without a CFA may not be welcome nor feel comfortable within that organization.

However, there are other firms where skill sets and expertise levels of individuals do not rest solely on the person’s current certifications. In searches I have seen for manager analysts, I have seen clients look for candidates with alternate certifications - such as the Certified Public Accountant, Chartered Alternative Investment Analyst, or even CIMA - in order to balance their analyst team.

Also remember that while certification does measure a level of accomplishment, it should never be the only reason someone is hired. Demonstrated professional accomplishment and proven skills sought for a particular position should always be the overriding reason someone is hired. Nothing succeeds like success.