The buy-side portfolio manager is responsible for managing investments on behalf of institutional or

retail clients. A critical responsibility is to provide the buy-side trader with pertinent market

information and analysis of risks to ensure that trades are executed effectively and aligned with the

investment strategy.

Explanation of Options:

A . Maintain Liquidity: Incorrect. This is more relevant to market makers or sell-side dealers who

provide liquidity in the market.

B . Contact with Dealers: Incorrect. While buy-side managers interact with dealers, their primary role

is to strategize, not to maintain constant contact.

C . Informing Traders: Correct. Buy-side managers analyze risks and market conditions and pass this

information to traders for execution.

D . Provide Information to Department Heads: Incorrect. This is not a core responsibility of buy-side

portfolio managers.

Reference:

CSC Volume 2, Chapter 27: Responsibilities of buy-side portfolio managers and their interactions with

traders​.