External Asset Management and Asset Classes

 

External Asset Management and Asset Classes

 
 

Our Process

  1. We meet with you and gather information regarding the void(s) you wish to fill in your overall portfolio.  We help quantify your need based on the following criteria:
    • Willingness to express risk relative to asset class in question
    • Acceptable downside and expected participation in upside
    • Commitment to asset class relative to overall holdings
    • If appropriate, reasons for dissatisfaction with current manager
  • B. We deliver to you an analysis of your needs based on your feedback, and present opportunities to engage a new manager or managers. We detail each recommendation, with an in-depth approach to the report, with the goal of you knowing all there is about the manager and why we believe a fit exists. If appropriate, we contrast the recommended manager with a manager that perhaps you presently engage with whom you've expressed dissatisfaction.
     
  • C. If desired, we arrange a meeting or series of meetings between the manager and you as part of the due-diligence process.

 

Our Criteria When Recommending a Manager

 

When appropriate, Integrous can act as your “CIO,” culling through and analyzing which manager(s) are best suited to meet your goals. We employ an exhaustive analysis of managers, mandating the following necessary criteria:

 

Disciplined and Repeatable Process

A manager must display commitment to asset class, unwavering structure of approach, and provide a track-record of formidable results relative to peer group and/or index.

 

Differentiation

A manager must provide a strategy, unique approach, and possibly quantitative or qualitative view on management that separates itself from the pack and is proven-out with superior results over time.

 

Commensurate Discipline in Buy and Sell Decisions

A Long-Only or a Long/Short manager must have demonstrative and tested processes in place that offer unemotional discipline based on a commitment to superior quantitative or qualitative analyses (or a combination of such) in their process when choosing and replacing names.

 

Providing Alpha

Track-record of outperformance, particularly in down quarters and years, relative to risk expressed. Integrous’ approach is to recommend managers who are particularly strong when the markets present the most challenging environment to deliver performance. However, when given a mandate to recommend a manager in a particular asset class, we always seek those with approaches that have been successfully tested in all types of economic cycles and market environments.

Team and Bench-Strength

PM’s with obvious experience and skill-set needed, with demonstrated experience and expertise, complemented by a team of professionals who are equally trained and proficient at managing the respective asset class. Having a deep “bench” is important to us as is “having a skin in the game,” by investing the firms’ own capital, is a plus but not a necessity.

 

Transparency

Our due-diligence must conclude with our understanding everything about a particular manager’s approach, reporting, systems, and personnel. Reporting has to be transparent; as assets are held at Wells Fargo Advisors or a broker of your choice, reporting and DD issues as they relate to reporting with integrity and accuracy and custody are mitigated if not completely eliminated in our “post-Madoff” world. We are extremely conscious and demanding of quality of controls and risk and best-in-class compliance at the managers in whom we entrust your assets.

 

Fees

Our consultative approach includes one fee covering the managers’ expense and ours as advisor and custodian, if you so choose. We endeavor to always offer the most competitive fees commensurate with performance and service. Fees are transparent, as we mostly focus on “non-carry” managers whose organizations charge a “flat fee,” often based on the size of the commitment.

 

Asset Classes Represented Among Our Choice of Managers

Whether you are an Endowment or Foundation, which likely invests without regard to tax management or a Family Office, MFO, or Accredited Investor, Pension, Union, etc. who cares very much about tax-efficiency and after tax-returns, our roster of managers offers our clients a full-complement of styles, asset classes, and disciplines. Among those asset classes are:

  1. 1. Public or Correlated Equities
    2. Private Equity
    3. Alternative Investments
    4. Liquid Alternatives
    5. Total-Return
    6. Fixed Income (Taxable and Tax-Advantaged/Free)
    7. Derivative-Overlay Strategies
    8. Long/Short Models
    9. Venture

 

Offer to “Kick Our Tires”

Do you have an underperforming manager among your stable of managers, in whom you’ve lost or are losing confidence? Please allow Integrous to run a complimentary, objective analyses of that manager versus one of ours in a similar asset class, complete with major data points, such as:

  1. Upside/Downside Capture analysis
  2. Fee Comparison
  3. After-Fee Historical Return comparison
  4. Description and comparison of approach and risk expressed
  5. Deep-drill into holdings to ensure asset class is properly represented
  6. Alpha Comparison

 

This Quarter’s Featured Manager: Sabrient Systems

Click here to read the Quantitative Investment Management Opportunity PDF from Sabrient Systems, the featured manager for Winter 2016.

 

 

 

 

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