The rock stars of the financial world, successful managers of the hottest funds appear on financial talk shows, write books, and are the talk of the financial community—until, of course, their hot streak ends. In the mutual fund boom of the late 1990s, following the successes and failures of fund managers was not only a phenomena in the financial world, main stream media began to focus their attentions on these wunderkind who made – or lost – investors so much money. It’s surprising that trading cards weren’t issued. Of course, that hasn't been the case so far in the 2000's, where stock funds haven't soared as high as they did 10 years ago.

But professional fund managers are another reason for the popularity of mutual funds in the U.S. During the last quarter of the twentieth century, Americans have heavily embraced the notion that if you want something done right, you should get a professional to do it for you. This is not a bad idea, particularly if you do not have the time to delve into the numerous financial papers to do the proper research necessary for finding individual stocks. Fund managers save you the trouble of sifting through thousands of potential stocks in an effort to build up your portfolio through one fund. Of course, as the number of funds grows, you will soon find yourself sifting through more funds than stocks. Nonetheless, it’s the full-time job of the fund manager to select the right investments for the fund. These managers are well-versed in the intricacies of the national and international fund markets.

To assess a good fund manager, you need to look at his or her background over several years. You want to look for consistency in management of the fund or previous funds. You also want to see that the fund manager is holding true to his or her fund’s financial goals. If, for example, you are looking at a more conservative growth and income fund, you don’t want to find out that the fund manager is making high-risk investments and taking the fund in a different direction (this is called “style drift”). It is more common than you might think to have fund managers with roving eyes—managers who look at and buy stocks that don’t fit the fund’s stated objective. On the other hand, if a fund is struggling, you may appreciate if the fund manager starts drifting for the sake of keeping your investment afloat.

You should also look closely at a mutual fund’s portfolio. While you may not be familiar with each and every purchase, you can ascertain whether they are following the latest trends or bucking the system. If you have heard, for example, that a certain market, such as automobiles, is taking a downturn, and the fund manager is buying heavily in that area, it will mean one of two things: either he or she is buying now for an anticipated turnaround (value investing), or he or she is not keeping up with the market’s news.

You should also look at how the fund manager fared during the down markets of, for example, 1997, 2001, and 2002. See how quickly their funds rebounded. Did he or she panic and make drastic moves or hold on tight and ride out the storm? Naturally it will depend on the type of fund and the particular holdings. The manager’s response is worth taking note of, since the market does go through volatile periods.

You also need to check out a new fund manager if you own a fund and the manager changes. A new fund manager needs to show that he or she can work within the structure of the particular fund, holding true to the goal of that fund. Fund size and assets can matter as well. A manager who has handled a $2 billion fund successfully may not be as comfortable when handed a $20 billion figure in a larger fund. Some managers are only successful with a finite amount of funds. You might also want to know whether or not this fund manager is working closely with a team of analysts or doing it all on his or her own. If the latter is the case, you could be in trouble when the manager moves to another fund and takes along his or her secrets.

Forbes, Kiplingers, Money, Morningstar.com, and other sources will rate the mutual funds and often give you the “lowdown” or profile on the fund manager. It’s important to look for consistency. If the fund manager has bounced from one fund to another, it is not a good sign if you’re looking to hold the fund for a long time period. It is also not to your advantage to have a fund with a different manager at the helm every year.