Overview & Approach
Today, institutional investors are seeking investment returns in a very challenging environment. Whether it is comes as a result of disappointing investment returns from alternative strategies or a sense of frustration with lack of creativity from traditional managers, investors are looking for something different. We are addressing that need by developing customized portfolios that leverage our expertise as domestic equity investors in the liquid public markets. These portfolios tend to be highly concentrated or “best ideas” strategies that seek to capture additional return in specific market cap ranges, certain economic sectors or with specific social investment objectives. As business owners, we embrace the opportunity to partner with our clients to create investment solutions that answer their needs.
The investment process for these opportunistic strategies are very similar to the process we use to construct our traditional portfolios. Stock selection will drive the investment returns. We meet with our clients to gain a better understanding of their objectives. For instance, is there a certain industry sector that is more appealing? How many names do you prefer in your portfolio? Is there a specific market cap range that is unique to your needs? Is there a social goal or objective you are targeting? Once the objectives are identified, we then go about building portfolios relying on our stock picking skills. Often, the portfolio holdings in our customized or opportunistic portfolios are also held in our traditional portfolios; thereby ensuring that all of our clients can expect the same level of rigor and discipline we apply to every stock held throughout the firm. Pete Cahill, our CIO is responsible for managing many of these strategies as they have very specific risk/return characteristics. Jeff Petherick, our lead portfolio manager also has the management responsibility for sector driven portfolios. The following illustrates some of these client specific strategies:
|Small Cap Core||45-55||Exceed the Returns of Russel 2000 Index|
|Small Cap “Best Ideas”||8-15||Exceed the Returns of Russel 2000 Index|
|Special Energy||8-20||Generate positive absolute returns / exceed the return of the S&P 600 Energy Sector|
We will continue to draw on our expertise in the public markets to build solutions for our clients.