Our Process

A successful investment strategy begins with a well-defined process.

1. Manager Selection

With so many investments to choose from how do you identify the managers you want in your portfolio? First, our firm utilizes Returns-Based-Style-Analysis to screen over 20,000 investment options including mutual funds, ETFs, separately managed accounts, and hedge funds. From those meeting our criteria, our research team utilizes over 30 quantitative filters to identify those managers that display similar characteristics of the overall investment philosophy of our firm. A few of these characteristics include but are not limited to:

  • A manager’s ability to consistently provide excess returns above an appropriate market and style benchmark.
  • Provide better risk/return characteristics versus an appropriate market and style benchmark.
  • The demonstration of better performance in down market moves.
  • The investment company’s ability to comply with all qualitative measures deemed appropriate by our firm.


2. Asset Class and Manager Optimization

The portfolios are built based on two essential components. The strategies begin with “Efficient Frontier” theories and are overlaid with a tactical component from our investment committee. The research team utilizes the “Efficient Frontier” classical portfolio theory used by many investment managers in their asset allocation decisions. According to the theory, whenever an investor has a collection of diversified, uncorrelated assets, an “Efficient Frontier” can be built. This is to say, it will have the highest expected return for any given level of risk. The investment committee provides further enhancement to the traditional “Efficient Frontier” theory by utilizing the Black-Litterman modeling system that provides two distinct differences:

  • This modeling system implements the “Capital Asset Pricing Model” theory that allows our firm to incorporate more asset classes in our modeling system.
  • Black-Litterman also allows for the implementation of investment committee forward-looking projections given the current market conditions. This ability allows investment committee to provide a tactical component to our strategies that allows us to focus and manage based on current economic conditions.


3. Ongoing Review and Monitoring

With actively managed portfolios the ongoing review and monitoring is critical to keep investors informed and investment strategies updated to address today’s ever-changing market conditions. Our firm conducts daily, weekly, monthly, and quarterly updates to constantly ensure our investment strategies stay on track with:

  • Financial goals and preferences of investors.
  • Regular rebalancing to maintain the proper allocations.
  • Ongoing adjustments to our models and strategies based on the investment committees’ view of global markets.
  • Forward looking, proactive, institutional investment research.


A Winning Stategy

With a strong focus on risk-averse, we aim to deliver satisfying results with a more comfortable investor experience than traditional buy-and-hold strategies which are often susceptible to severe swings as they capture large portions of negative, as well as positive, market movements. At our firm, we accept the possibility of missing some of the upswings in order to minimize downside risk. Our investors benefit from our use of large low and negatively correlated asset class exposures and money market positions to reduce downside volatility. And because we rigorously follow our model, investors know what to expect from us.

Past performance is no guarantee of future results. Investments are subject to risk, and any of our firm’s investment strategies may lose money.