News that Apple co-founder Steve Jobs has resigned as chief executive is raising lots of questions about how the technology giant will perform in the future.
Jobs will be replaced in the role by chief operating officer Tim Cook.
The resignation and change at the top follows a long period of medical leave for Steve Jobs and an admission he can no longer meet the duties or expectations of the role.
In the cult of Apple, Steve Jobs is undoubtedly the leader and a driving force behind much of the innovation, excitement and success associated with the brand in recent years.
In this respect, Jobs has many of the attributes of a ‘star’ fund manager in the world of financial services.
Star fund managers are typically created by a combination of their performance track record and media profile.
Some investors argue that it makes sense to back a star, because by putting their name and personal brand on the line they have a bigger incentive to perform.
But picking a ‘star’ is no guarantee of future success.
Star fund managers have periods of bad performance and move to other fund management groups, just as other funds managers often do.
Sometimes the nature of being a ‘star’ manager can amplify bad performance, as investors leave en masse as a result of bad news.
In this respect, being a star fund manager can be a double-edged sword.
The number of star fund managers appears to have fallen in recent years, as fund management groups realise it makes more sense to focus on the importance of a team approach to research and management within a fund.
It is the process which supports an investment fund which really counts. Whilst it is nice to have a big name associated with the management of an investment fund, what really matters is the style of the fund and the level of resources available to supply research and analysis.
Fans of Apple understand that Steve Jobs was incredibly important to the business but losing him should not herald the end of this ultra-successful technology brand.
A new leader will emerge at Apple and innovation will continue there.
Investors should ensure that the funds they select are like Apple in this respect; with strong leadership and a strong team delivering success as a result of a robust process and the optimum working environment.
Leaders are important. Teams and processes are equally as valuable when selecting investment funds.
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