Are the managers under contract? If not, what is to stop them from walking away?
As is often the case in our industry, the managers are not under long-term contracts. This means that they could walk away or we could fire them at any point. Practically speaking, if the relationship is going well and they are doing a good job, we will want to keep them and they will want to stay. If that is not the case, we wouldn’t want to keep them and we certainly wouldn’t want a sub-advisor to be contractually forced to run money for Litman Gregory Masters Funds. To date we have removed several sub-advisors though it is obviously our goal to make good long-term hires so that removals are rare.