What responsibility falls on the buy-side portfolio manager?

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.