Process

Our institutional quality investment process is measurable, sustainable and repeatable.

In-depth understanding of macroeconomics drives our edge in active portfolio management. Robust manager selection process identifies high quality, non-correlated, managers with the skill and expertise that aim to generate superior risk-adjusted returns.

Global Network

  • Extensive manager sourcing network developed over 30+ years
  • Proprietary database of hundreds of managers
  • Leverage deep relationships with existing managers to source new investment opportunities
  • Initial screening and quantitative analysis
  • Monthly Pipeline Meeting to filter & prioritize managers for further diligence

Systematic Process

  • Detailed evaluation of the manager's strategy, investment process & risk controls
  • Evaluation of manager skill, pedigree & operational integrity
  • Multiple calls & on-site visits
  • Qualitative diligence enhanced by rigorous quantitative analyses of risk & reward, beta1 factors, VaR and extreme tail loss
  • Customized peer comparison using proprietary analytics

 

1Beta is a measure of the correlated volatility of an asset in relation to the volatility of a market benchmark. A beta of 1 indicates that the asset's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market.

Independent Verification

  • Exhaustive business, structural & organizational evaluations
  • Independent third party background checks; out of sample reference checks
  • Examination of prime brokers, custodians, counterparties, cash controls, NAV & pricing
  • Asset testing & verification; SEC, auditor & administrator checks
  • Compliance, legal, regulatory & infrastructure review

Risk Management

  • Comprehensive exposure analysis of future opportunities across strategies, instruments, sectors & geographies
  • Upside, downside return & volatility assessment
  • Beta1 sensitivity & factor modeling
  • Diversification, liquidity, concentration, leverage & holding period are evaluated
  • Investment Committee sets allocation range

 

1Beta is a measure of the correlated volatility of an asset in relation to the volatility of a market benchmark. A beta of 1 indicates that the asset's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market.

Ongoing Monitoring

  • Primary & secondary analyst coverage
  • Monthly investment team monitoring meeting
  • Monthly & quarterly calls, on-site meetings
  • Monthly performance & attribution analysis; exposure & risk analysis
  • Semi-annual manager deep dive and portfolio review
  • Annual operational review

Global Perspective

  • Dorothy Weaver's experience chairing the Federal Reserve Bank of Atlanta, Miami Branch, & work in Latin America
  • Michael Collins' experience as President of Allianz N.A.
  • Assessment of macroeconomic, geopolitical, socioeconomic, capital markets, global monetary & fiscal conditions
  • Examination of global headwinds and tailwinds impacting economic conditions & investment landscape
  • Strategy Sensitivity Analysis to interest rates, credit spreads, capital markets, volatility & multiple economic factors

Critical Top-Down Analysis

  • In-depth strategic Semi-Annual 3 Day Portfolio Retreat
  • Comprehensive review of challenges, opportunities, risks, market conditions impacting asset classes & investment strategies
  • Detailed proprietary risk exposure analysis
  • Drill down on non-correlation to markets, economic factors, asset classes and other managers
  • Allocation plan identifies market & economic conditions that impact manager allocations over next 12-18 months

Forward-Looking

  • Allocate to compelling opportunities & reduce exposure to strategies/managers with anticipated headwinds
  • Proactive portfolio allocation based on carefully considered future opportunity set
  • No rear view mirror optimization of historic performance
  • Risk/Return parameters developed
  • Target strategy & manager allocation ranges established
  • Construction emphasizes diversification & non-correlation

Active Discipline

  • Formal Investment Team meeting framework drives active portfolio management
  • Manager allocations managed to established target ranges
  • Rebalancing the effects of manager out-performance / under-performance
  • Deploying new capital
  • Implement manager redemptions & planned investments for upcoming months