Advisors Capital Brings Income Growth Strategy To Institutions
June 6, 2013
Charles Lieberman had tried going down the institutional road before.
Granite Sees Big Opportunities In Micro-Cap Strategy
May 2, 2013
Boasting a nearly ten-year track record with top decile long-term numbers in its domestic micro-cap equity portfolio, Granite Investment Partners believes it is positioned to be front and center with institutional investors looking to tap into the space.
300 North Capital Brings Unique History To Emerging Space
May 2, 2013
300 North Capital, LLC is not your average “emerging manager.” The firm has a long history dating back to the 1950s and up until the start of the year was a subsidiary of Old Mutual (US) Holdings, Inc. but now sits 100% employee-owned with approximately $680 million in assets.
Hilton Brings Tactical Approach To Portfolio Management
May 2, 2013
Tactical asset allocation strategies have continued to garner more interest from institutions looking to benefit from an investment firm’s ability to strategically navigate the markets.
Advanced Investment Partners Sees ESG As Risk Reducer
May 2, 2013
Advanced Investment Partners has reached its three-year track record on its environmental, social and governance small- to mid-cap core equity strategy.
The strategy hit the three-year mark at the end of February and the firm hopes the milestone will increase institutional interest in the fund. “We’ve been just letting the track record roll on and eyeing that three year mark,” said Jon Quigley, managing partner and co-cio at the Safety Harbor, Fla.-based firm. “People want to see that. Consultants, especially, want to see that…before you are going to get much interest.”
The strategy is not only in the second percentile for information ratio but was the top returning small- to mid-cap core equity strategy in 2012, according to eVestment.
The strategy mirrors the firm’s traditional smid-cap core portfolio and Quigley said the firm does not discuss ESG as a source of alpha but does believe it is a risk reducer. “We can show that companies with lower ESG scores have 20% greater volatility and greater tail risk,” he said. “That is where we put our flag in the ground is in the risk equation.”
The ESG smid-cap strategy has approximately $10 million in assets. Quigley said the firm is also able to customize the strategy for issues such as faith-based investing and mission/values driven investing such as women’s rights, environmental issues and other special interests.
Quigley said that customization has garnered interest from Catholic Church organizations and the ESG strategy has attracted attention from foundations and endowments, though there still appears to be more discussion about ESG than actual action.
“We are certainly going to continue to develop research around the strategies and publish that research,” Quigley said.
The portfolio is constructed by first using the firm’s bottom-up systematic process that utilizes a broad universe analysis, a style-specific analysis and a sector-specific analysis. In analyzing the broad universe, the firm evaluates each stock relative to all other stocks in the investment universe. The style-specific analysis splits the universe into four style and market cap groups and evaluates each stock relative to its peers. Lastly, the sector-specific analysis divides the universe into 11 economic sectors and evaluates each stock relative to its sector peers.
The three analyses are then combined to generate an excess return expectation for each company, with only stocks ranking in the top 20% being considered for inclusion in the portfolio.
Ultimately, the strategy will have anywhere from 125 to 150 holdings. “We want this to be a core portfolio holding rather than a niche allocation,” Quigley said.
Channing Capital Reaches Significant Firm, Strategy Milestones
April 4, 2013
Channing Capital Management has reached $1 billion in firm-wide assets under management and surpassed $500 million in its domestic small-cap value equity portfolio.