Research

INVESTMENT MANAGEMENT RESEARCH

Using both quantitative and qualitative methods, our proprietary research seeks to identify the following characteristics of investment managers:

Quantitative Evaluation: 
The manager must have demonstrated a history of acceptable risk-adjusted performance.

The manager is expected to produce performance that exceeds the appropriate benchmark over three and/or five-year time periods.

The manager is expected to produce performance that exceeds the median performing manager in a peer universe of other managers with a similar investment style.


Qualitative Evaluation:
The manager will certify that they have read the Firm’s Investment Policy Statement in it’s entirety, and will comply with the terms and expectations.

Investment managers must be a bank, insurance company or a SEC registered investment advisor. 
 
The manager must accept responsibility as an ERISA fiduciary clearly and in writing.  

The manager must maintain Errors and Omission Insurance (E&O) in the amount of $5 million ($5,000,000) and provide a copy.

The manager must also certify the following and provide immediate notification of any changes to the following:

  1. Have there been any changes in ownership?
  2. Have there been any changes in personnel?
  3. Have there been any changes to the investment process?
  4. Have there been any violations of internal policies and procedures?
  5. Are you currently under investigation by any regulatory authority?
  6. Have you contacted your E&O insurer about a potential claim?
  7. What are your assets under management (AUM)?
  8. What were the changes in your AUM during the past quarter and why?
  9. Are you in compliance with our Investment Policy Statement?
  10. Are there any other matters not previously addressed that should be disclosed to us?

RESEARCH PHILOSOPHY REGARDING ASSET CLASSES

All asset classes are considered, but our Research process focuses on the following broad asset classes for inclusion in client portfolios:

  • Domestic Stocks
  • International Stocks
  • Investment Grade Bonds
  • High Yield Bonds
  • Real Estate
  • Private Equity
  • Private Debt
  • Alternatives (Hedge Fund of Funds, Global Tactical Asset Allocation, Life Settlements, etc.)

PUBLICLY TRADED EQUITIES
(STOCKS)

Stocks represent an ownership interest in a company and include certain ownership rights including, a pro-rata share of the profits, a pro-rata share of the assets, and the right to vote proxies. Stocks are traded on various exchanges throughout the world and can be categorized loosely as Domestic or International. These securities have a high risk and return profile and have excellent liquidity.

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PUBLICLY TRADED EQUITIES
(STOCKS)

Stocks represent an ownership interest in a company and include certain ownership rights including, a pro-rata share of the profits, a pro-rata share of the assets, and the right to vote proxies. Stocks are traded on various exchanges throughout the world and can be categorized loosely as Domestic or International. These securities have a high risk and return profile and have excellent liquidity.

PUBLICLY TRADED FIXED INCOME
SECURITIES (BONDS)

Bonds represent a loan by a security investor to the security issuer. The terms of the bonds vary widely in structure. The payment of interest, principal, and security are well defined, and the ability of the issuer to perform on the bond repayment terms must be thoroughly analyzed. While bonds are considered to be relative low-risk investments they do have both interest rate risk and default risk. Bonds can be subcategorized into investment grade and non-investment grade credit qualities and further sub-categorized by issuer as government, agency, and corporate bonds. Each type of issuer has some type of credit risk. All types of bonds carry some level of interest rate risk. These securities have excellent liquidity.

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PUBLICLY TRADED FIXED INCOME
SECURITIES (BONDS)

Bonds represent a loan by a security investor to the security issuer. The terms of the bonds vary widely in structure. The payment of interest, principal, and security are well defined, and the ability of the issuer to perform on the bond repayment terms must be thoroughly analyzed. While bonds are considered to be relative low-risk investments they do have both interest rate risk and default risk. Bonds can be subcategorized into investment grade and non-investment grade credit qualities and further sub-categorized by issuer as government, agency, and corporate bonds. Each type of issuer has some type of credit risk. All types of bonds carry some level of interest rate risk. These securities have excellent liquidity.

REAL
ESTATE

Real Estate has proven to provide excellent risk-adjusted returns. Real Estate has limited liquidity as an asset class, which should be considered in contemplating an allocation. Direct real estate investments are acceptable if properly allocated and properly reviewed by a Qualified Professional Asset Manager (QPAM). The preferred investment vehicle however is a Commingled Trust. The Commingled Trust vehicle allows the investor to invest in a pool of investments for better diversification. These pools include exposure to Industrial, Multi-family (apartments), Office, and Retail. Other real estate opportunities include exposure to timberland and infrastructure. As these types of investment vehicles and investment portfolios vary widely, they should be thoroughly understood before making an allocation.

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REAL ESTATE

Real Estate has proven to provide excellent risk-adjusted returns. Real Estate has limited liquidity as an asset class, which should be considered in contemplating an allocation. Direct real estate investments are acceptable if properly allocated and properly reviewed by a Qualified Professional Asset Manager (QPAM). The preferred investment vehicle however is a Commingled Trust. The Commingled Trust vehicle allows the investor to invest in a pool of investments for better diversification. These pools include exposure to Industrial, Multi-family (apartments), Office, and Retail. Other real estate opportunities include exposure to timberland and infrastructure. As these types of investment vehicles and investment portfolios vary widely, they should be thoroughly understood before making an allocation.

PRIVATE EQUITY
PARTNERSHIPS

Stocks represent an ownership interest in a company and include certain ownership rights including, a pro-rata share of the profits, a pro-rata share of the assets, and the right to vote proxies. Stocks are traded on various exchanges throughout the world and can be categorized loosely as Domestic or International. These securities have a high risk and return profile and have excellent liquidity.

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PRIVATE EQUITY
PARTNERSHIPS

Stocks represent an ownership interest in a company and include certain ownership rights including, a pro-rata share of the profits, a pro-rata share of the assets, and the right to vote proxies. Stocks are traded on various exchanges throughout the world and can be categorized loosely as Domestic or International. These securities have a high risk and return profile and have excellent liquidity.

PRIVATE DEBT
PARTNERSHIPS

Bonds represent a loan by a security investor to the security issuer. The terms of the bonds vary widely in structure. The payment of interest, principal, and security are well defined, and the ability of the issuer to perform on the bond repayment terms must be thoroughly analyzed. While bonds are considered to be relative low-risk investments they do have both interest rate risk and default risk. Bonds can be subcategorized into investment grade and non-investment grade credit qualities and further sub-categorized by issuer as government, agency, and corporate bonds. Each type of issuer has some type of credit risk. All types of bonds carry some level of interest rate risk. These securities have excellent liquidity.

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PRIVATE DEBT
PARTNERSHIPS

Bonds represent a loan by a security investor to the security issuer. The terms of the bonds vary widely in structure. The payment of interest, principal, and security are well defined, and the ability of the issuer to perform on the bond repayment terms must be thoroughly analyzed. While bonds are considered to be relative low-risk investments they do have both interest rate risk and default risk. Bonds can be subcategorized into investment grade and non-investment grade credit qualities and further sub-categorized by issuer as government, agency, and corporate bonds. Each type of issuer has some type of credit risk. All types of bonds carry some level of interest rate risk. These securities have excellent liquidity.

ALTERNATIVES

There are many other types of investments that may be suitable for ERISA investors including Hedge Fund of Funds, Global Tactical Asset Allocation, Life Insurance Settlements, etc. Each of these investments should be thoroughly understood before creating an allocation. Factors for consideration include risk, return, correlation, liquidity, management fees, etc. The investment vehicle should clearly state that the manager is acting as an ERISA fiduciary.

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ALTERNATIVES

There are many other types of investments that may be suitable for ERISA investors including Hedge Fund of Funds, Global Tactical Asset Allocation, Life Insurance Settlements, etc. Each of these investments should be thoroughly understood before creating an allocation. Factors for consideration include risk, return, correlation, liquidity, management fees, etc. The investment vehicle should clearly state that the manager is acting as an ERISA fiduciary.

PASSIVE VS ACTIVE
INVESTING

There are two primary approaches to investment management, passive and active investing. Passive managers construct their portfolios to closely approximate the performance of well-recognized market indices. Passive investing typically has the lowest management costs. Active managers attempt to beam a benchmark through stock selection and sector allocation. Active investing, because of research and time requirements, tends to be more costly.

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PASSIVE VS ACTIVE
INVESTING

There are two primary approaches to investment management, passive and active investing. Passive managers construct their portfolios to closely approximate the performance of well-recognized market indices. Passive investing typically has the lowest management costs. Active managers attempt to beam a benchmark through stock selection and sector allocation. Active investing, because of research and time requirements, tends to be more costly.