Our Active strategy utilizes a top-down investment process. This approach is based on the analysis of a wide range of economic, global, political, and sentiment drivers to formulate forecasts and develop portfolio themes. The investment strategy attempts to capitalize on any style and sector cycles as they come into and out of favor.

We believe that exceptional returns can only be achieved by structuring portfolios uniquely from the market indices, thus we limit portfolios to 10-15 stocks, allowing us to concentrate on our best ideas. The goal of our Active strategy is to outperform its own risk-adjusted benchmark in any market environment. To accomplish this, our investment processes focus on the most important determinants of portfolio return: style, sector, and stock selection. 

In additions, our Active strategy attempts to add value and performance via style and sector decisions as they come into and out of favor. Additionally, the strategy seeks to add value at the security level, but we believe traditional fundamental equity research is most effective when used to complement higher-level portfolio themes, rather than as the sole focus of the investment process. This has proven to be successful over the years for our firm. 

Strategy benefits include:

  • Excess return in a variety of market environment
  • A top-down process maximizing diversification benefits
  • A broader mandate, increasing the opportunity set and the probability of beating the benchmark
  • Fundamental and technical research methods used in a complimentary fashion
  • Economic, political, and sentiment drivers that help shape portfolio themes
  • Security selection levered to themes that are currently driving market conditions