Fund And Security Selection
It is obvious that no single investment management company or portfolio manager can be a top performer in respect of every geographic region or different type of asset class. We consider a multi-manager approach to any investment portfolio and choose specialist managers for differing investment disciplines. We prefer to diversify amongst known specialists with proven track records. Where appropriate, we may also hold discrete investments in individual securities, if both the portfolio type and risk profile warrant it. The advantage of this diversified approach is that portfolios will be exposed to the investment styles, strategies and positioning of different, often top, investment specialists. This reduces the risk profile of an investment portfolio, in our opinion, as, should one investment house misread the market, it has less chance of having a negative effect on the entire portfolio. We believe such diversification served our clients well during the credit crisis of 2008 & 2009 when, even the most seasoned Managers, potentially faced exogenous risks. We also believe that we avoid some of the more obvious pitfalls that firms make when evaluating Managers i.e. a dependency upon quantitative metrics. We agree that such metrics are objective, cheap, and easy to obtain and they do not require much in the way of judgment. We therefore seek to combine quantitative techniques with an added focus on qualitative analysis. To achieve this, we ensure that our experienced investment analysts are involved in the process of screening, evaluating and ultimately selecting the Managers used within any clients' portfolios.